Why long-term care insurance makes sense now

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If you haven’t thought about long-term care insurance, now is the time to do so. Whether you need care in your later years or you get sidelined by an accident or prolonged illness, medical costs could eat away your savings. This infographic shows why a long term care policy might make sense to help protect your assets. A text only version of the infographic is available below the image.

Infographic: Why long-term care insurance makes sense now. See the accessible HTML version below.

Why should I get long-term care insurance now?

What is long-term care?

Long-term care insurance is designed to help you cover the costs of care not covered by health insurance, Medicare or Medicaid over a fixed period of time. This kind of policy reimburses you a fixed, daily dollar amount toward medical care such as professional in-home support, an assisted living facility or nursing home.1

Long-term care recipients are getting younger

About 70 percent of Americans over age 65 will need long-term care services during their lifetime. By 2020, this number is expected to exceed 12 million people.2 It’s better to get a policy now, before you reach retirement age, to likely save on policy costs.

Age when you’ll likely need care3

  • 81 percent of care recipients were 65+ in 2010.
  • 60 percent of care recipients were 65+ in 2015.

59 - Average age of a long-term care policy purchaser4,5

Reasons for needing care

Accident

  • In 2010, 11 percent of recipients needed care due to an accident.
  • In 2015, 19 percent of recipients needed care due to an accident.

Illness

  • In 2010, 44 percent of recipients needed care due to an illness.
  • In 2015, 35 percent of recipients needed care due to an illness.

The cost of medical care continues to rise

Paying for long-term care out of pocket can quickly reduce your nest egg.

Type of Service Estimated monthly cost
Home health care 2018 2028 2038
Homemaker services $3,535 $4,751 $6,385
Home health aide $3,633 $4,882 $6,561
Adult day care $1,182 $1,589 $2,136
Assisted living facility $3,348 $4,499 $6,046
       
Nursing home care 2018 2028 2038
Semi-private room $7,049 $9,474 $12,732
Private room $7,832 $10,526 $14,146

Protect your finances

Without a long-term care policy, you could be faced with tapping into your savings or retirement funds to pay for care.6

  • 62 percent: Pay for care with their own savings/retirement funds
  • 45 percent: Reduce their quality of life due to the costs of care
  • 38 percent: Reduce contributions to their savings and retirement accounts due to the costs of care

Plan now to cover the cost of long-term care, later.

Sources

1 https://www.lifehappens.org/insurance-overview/long-term-care-insurance/
2 https://www.prudential.com/media/managed/LTCCostStudy.pdf
3 https://www.genworth.com/about-us/industry-expertise/cost-of-care.html
4 https://www.lifehappens.org/insurance-overview/long-term-care-insurance/cost-of-care-map/
5 https://www.ahip.org/issues/long-term-care-insurance/
6 https://www.genworth.com/about-us/industry-expertise/cost-of-care.html

Find out what to look for in a long-term care insurance policy or discover more topics to help you plan for retirement.

The advice provided is for informational purposes only. Contact your insurance advisor for additional guidance.

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