Long Term Care - It’s Not Just for Seniors Anymore

A conversation has started in this country. People are concerned about the costs of long term care as the baby boomers age. But it isn’t just the graying of America that poses the problem. We can expect our current population to need long term care much sooner than previous generations, due to an increasing rate of obesity, diabetes and heart disease in our young.

When you think of nursing homes, what comes to mind? Is it a building full of frail elderly folks nodding off in their respective wheelchairs or beds? If so, you are imagining the typical scene and, in most nursing homes, that’s exactly how it is.

But the face of long term care is changing. We’re realizing that LTC is not just for the elderly. As a matter of fact, while more than half of Americans age 65 will eventually need long term care, a whopping 40% of people receiving long term care are between 18 and 64 years old!

You probably won’t see the middle-aged and young in nursing homes, though. Nursing homes are for people on their last legs. So, when you read the statistics that the average nursing home stay is only 2.5 years, it’s a bit misleading. Most long term care is received long before someone is admitted to a nursing home.

Long term care is provided in various settings besides nursing homes. People who need care services can live at home, in assisted living facilities, in residential care facilities and even spend time at day care centers.

Most people want to stay at home as long as possible, if they can get home care. Unum, one of the leading LTC group insurance providers in the U.S. analyzed their group policy claims. They found that 66% of their claimants under the age of 65 received care at home. If you’re well enough not to need skilled nursing care, assisted living and residential care can be more pleasant than many of the sterile skilled nursing home settings. Not surprisingly, only 17% of UNUM’s claimants actually received nursing home care.

Even so, all long term care costs money. According to the National Association
of Insurance Commissioners, the average cost of nursing
home care is approximately $70,000 per year. Surprisingly, 24 hour home care can be even more costly. Depending upon where you live, 24/7 home care costs can be as high as $150,000 per year - or higher! So, who’s going to pay for this care?

Saving enough money to pay for long term care is nearly impossible for those of us with average or even above average incomes. Let’s say you’re 35 years old now and you plan to “retire” in Mississippi (which currently has lower long term care costs than many states). Considering the rate of inflation, along with a 4% interest rate on your savings, you would need to put aside $800 per month to cover your future costs!

Can you afford to stash away $800 per month? If so, then great! If not, then what will you do?

Your monthly LTC savings deposit would also depend upon how soon you needed care, as well as how much care you needed and for how long. What if you’re one of the 40% of Americans who requires long term care services before they reach age 65? You simply wouldn’t have enough time to save enough money.

Long Term Care insurance is a much cheaper route to go. The problem is that many people put off their buying decision until it’s too late.

So, how long can you afford to wait? Well, considering 58% of LTCi claims are from people under 65 years of age, I’m guessing you might not want to wait too long!

The U.S. Senate Special Committee on Aging estimates that approximately 10 million people need long term care today. Yet only 9% of Americans surveyed own LTC insurance policies, according to a Wall Street Journal/Harris poll.

Don’t procrastinate! Get your Long Term Care insurance quote and decision assistance now.

Technorati Tags: long term care, nursing home, Long Term Care insurance, LTCi