Can you think of something that over half the people in the population needs? If you guessed long term care services, you were right on the money.
Current 2016 HHS LTC Services Study statistics show 52% of people age 65 will need paid long term care services to help with activities of daily living or assistance due to a cognitive impairment such as dementia or Alzheimer’s.
Let’s dive deeper into the real risk of long term care.
How Long Will the Average Person Need Care?
Of the 52% age 65 or older needing LTC services:
- 23% need care for at least one year
- 9% need care for 1-2 years
- 10% need care for 2-5 years
- 6% need care for five years or more
This data shows that some LTC coverage is still better than no coverage at all. While it’s important to plan for the financial risk of a long-term cognitive impairment, the highest percentage need care for at least a year, according to this study.
How Much Does the Average Length of Care Cost?
Is your family prepared to pay the cost of a long term care event? The average person today could spend up to $140,000 for paid LTC services out of their own pocket. This may include community-based care, in-home care, assisted living room and board, and nursing home care.
Many families don’t have immediate access to funds to cover the monthly out-of-pocket expenses for a loved one’s care. Public assistance, such as Medicaid, has limitations and some LTC services may not be covered. Or, you may not have a choice in where and how you receive care.
Why Some Long Term Care Coverage Is Better Than None
With one in two people needing care, LTC insurance is the safe way to protect your finances and independence. Consider a smaller long term care policy with a two-year duration and lower monthly benefit to help keep premiums lower.
Having some coverage can help reduce stress on family or loved ones who may worry about managing and paying for your care. Even a small benefit can offer great relief for families during these difficult times.
Have you taken the next step to prepare for your future? At LTC Consumer, we help individuals and couples across the nation shop for a Long Term Care insurance online. Speak to an LTC Specialist today about your options.