The need for long-term care services has grown as the life expectancy of the U.S. population increases. There is a 70% chance a person who is 65 years of age or older will need long-term care and women are more likely to need this care because they live longer than men on average. It’s not just the elderly who are most likely to need long-term care services. People who have been in an accident, have a chronic illness or chronic condition due to poor eating habits, lack of exercise or family history are more prone to need long-term care services. Also, people who live alone are likely to need long-term service if they don’t have family or a partner nearby to help take care of them.
Long-term care services are expensive for most people and the longer a person needs servicing, the more expensive it gets. The average length of care for women 65 years of age or older is 3.7 years, and for men, it’s 2.2 years, but 20% of people 65 years or older will need five or more years of care. Costs vary by state, the provider being used and the type of services being provided. The average national annual cost of long-term care are as follows:
• Home health care: $45,760 – $46,332
• Adult day health care: $17,680
• Assisted living facility: $43,539
• Nursing home care: $82,125 – $92,378
Costs for some providers are all-inclusive. Other providers have a flat fee then add extra charges for services beyond room, food and housekeeping.
Health insurance only provides limited coverage for specific types of long-term care medical needs, and disability insurance doesn’t provide any long-term care coverage. Health insurance, including Medicare, generally covers skilled nursing facility stays after a recent hospitalization and medically necessary skilled home care. Disability insurance is only designed to provide an income to a person when they become disabled and are unable to work.
Long-term care insurance is specifically designed to cover the cost of long-term care services that are provided in a variety of settings. This insurance is comprehensive and it’s flexible enough to provide a person with individualized coverage. The monthly premiums for a long-term care insurance policy are based on a person’s age at the time they apply for a policy, the type of policy they apply for and the type of coverage they select.
Long-term care is a complicated process that involves family, nursing care representatives, and in some cases, social workers and legal counsel. It can be a delicate time for everyone involved. It’s important to take the time to make the right decision so that the person who needs these services can be satisfied with the decision.
How Will Your Loved Ones Live Without Your Income?
Many households are run on a paycheck to paycheck basis. Some people may have a modest amount of savings but it may take two incomes to pay the monthly bills. Your spouse and children may quickly run out of money without your income to support them. Life insurance benefits are most commonly used to supplement lost wages and to eliminate debts after an income-producing adult passes away. By eliminating debts with insurance proceeds, your loved ones will need less money to live off of each month. Some people will purchase enough insurance to pay off all outstanding debts including the home mortgage. The surviving spouse may even be able to support the family through his or her income alone after the debts have been eliminated. Others will purchase enough coverage so that the proceeds can be invested to generate supplemental income.
How Will Your Spouse Be Able to Retire?
While some life insurance is needed to help your loved ones to survive on a monthly basis, you also need to think about the future. Your income may currently be instrumental in your spouse’s ability to fund a retirement account. Without your income, your spouse may be forced to work for many years past the traditional retirement age. This can create an unnecessary hardship on him or her. It is wise to purchase extra coverage to fund a retirement account.
Do Your Kids Need Financial Assistance Getting Their Adult Lives Started?
If you have kids, you may be aware of their financial dependence on you, and this will often not simply evaporate when they turn 18. Many children need financial assistance buying their first car, paying for their wedding, paying for college and more. Some parents will purchase additional death benefits so that their kids’ lives are not financially impacted by a death.
How Much Coverage Do You Need?
This is a complicated question that often requires you to create a solid financial plan for the future. Funds can be used strategically in different ways, such as to purchase income-producing assets, pay off debts and more. Your current lifestyle, debts and assets must all be taken into account. It is wise to work with an experienced life insurance expert to review your financial needs.
Death is something that can unfortunately happen at any time. Some people will live well into their 90s or beyond, but others have a life that is cut short far too soon. Because you cannot predict what will happen or when life insurance benefits will be needed, it is imperative that you purchase coverage as soon as possible. 
