What is Long-Term Care?

Long-term care goes beyond medical care and nursing care to include all the assistance you could need if you ever have a chronic illness or disability that leaves you unable to care for yourself for an extended period of time. You can receive long-term care in a nursing home, assisted-living facility, or in your own home. Though older people use the most long-term care services, a young or middle-aged person who has been in an accident or suffered a debilitating illness might also need long-term care. Beyond nursing homes, there is a range of services available in the community to help meet long-term care needs.

You may never need long-term care. But, in the year 2020, some 12 million older Americans are expected to need long-term care. Most will be cared for at home. Family members and friends are the sole caregivers for 70 percent of elderly people. A study by the U.S. Department of Health and Human Services indicates that people age 65 face at least a 40 percent lifetime risk of entering a nursing home sometime during their lifetime. About 10 percent will stay there five years or longer.

The American population is growing older. The odds of entering a nursing home, and staying for longer periods, increase with age. In fact, statistics show that at any given time, 22 percent of those age 85 and older are in a nursing home. Because women generally outlive men by several years, they face a 50 percent greater likelihood than men of entering a nursing home after age 65. As the "Boomers" start retiring the percentages of those needing care is likely to increase.

The average facility-care stay is 2.5 years.Based on a daily benefit of $200.00 an individual would need $182,500 (or $365,000 for a couple) of additional assets in today's dollars to cover the need.This same need 15 years in the future is expected to be far greater.While many people may not like to buy insurance, typically, it is the most economical way of preparing for a serious need and preserving the wealth that they have worked a lifetime to create.

Planning on the Government aid for certain benefits?I would be careful relying on the federal government for such care.In fact, your Social Security statement states, "Medicare does not pay for long-term care, so you may want to consider options for private insurance."

I would encourage all of you to contact me at chrisd [at] cb3 [dot] com for a free long-term care insurance consultation or a review of your current Long-term care policy, if you already own one.

Resources: "Guide to Long-Term Care Insurance" by America's Health Insurance Plans / February, 2010 Social Security Statement.