Long Term Care Insurance – Are You Prepared?

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Long Term Care Insurance

Chances are you’ve had family members or close friends who suddenly found themselves being responsible to provide care for an aging parent or a disabled child. According to the American Association of Retired Persons, now simply referred to as AARP, currently 20 million Americans provide care for their aging parents. So, today let’s discuss Long Term Care Insurance, are you prepared?

Activities of Daily Living, aka ADLs

ADLs are part of everyone’s life. It matters not if you are young or old, still working or retired, if you suddenly find you or a loved one in need of assistance to perform two of the following activities, then long term care may be needed:

    • Eating
    • Bathing
    • Dressing
    • Toileting
    • Transferring from a chair or bed

In 2009, The Insurance Information Institute (III) took to the streets to determine how much the average person understood about Long Term Care Insurance (LTCI). Now almost 10 years later, many Americans still have the same questions.

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It is important to remember that long-term care need not take place in a nursing home. It is often provided in an assisted living facility, at home, or even in an adult day care center.

Long-Term Care Challenges

On October 16, 2018, CNBC published an article “Two ways to defray this retirement risk: How to choose what’s right for you.” Key to the discussion was that as people approach retirement, they can very well expect to live for two more decades! CNBC referred to a 2017 Genworth study of national median annual costs of long-term care:

  • Home Health Care: Homemaker Services $47,934, Home Health Aide $49,192
  • Adult Day Health Care: $18,200
  • Assisted Living Facility: $45,000
  • Nursing Home Care: Semi-Private Room $85,775. Private Room $97,455

The National Association of Insurance Commissioners (NAIC) updated their article Long Term Care Challenges on July 11, 2018. The NAIC offers some hard facts:

  1. According to the U.S. Department of Health and Human Services (HHS), about 12 million of America’s senior citizens will require long-term care by 2020.
  2. Fewer LTCI policies are being sold – 754,000 in 2002, versus 129,000 in 2014
  3. There are two key factors driving life insurance product development: A) mortality risk; and B) longevity risk.

Additionally, InvestmentNews recently praised the NAIC for their work on making LTCI policies safer and more accessible, “Long-term-care insurance gets a boost, but there is more to do.”

John Bailey Company invites you to have that conversation

Do you have long-term care insurance? Have you ever considered it for yourself and/or your spouse? Maybe you’ve been drawn into that conversation with one or more of your parents. No doubt there is a lot to consider. Location can be a big factor. Do you live near your aging parents or are you an aging parent living a long distance from any of your children? Is self-funding a financial option? Let’s have that conversation to design a strategy to fit your needs and your budget.

At our Knoxville, TN, insurance agency we are dedicated to simple life insurance solutions, including long term care insurance. Preparing for the unexpected can go a long way in planning for your family’s financial future. Our team of licensed professionals can help you find the right life insurance package and long-term care insurance to insure a great life. Contact us today by calling 865.524.0785.

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Author: Brandon

Farragut High Grad, Ole Miss Rebel, Certified Insurance Counselor – CIC, Specialty Insurance Lover, Past Outdoor Insurance Underwriter, Co-Founder successes – Young Professionals of Knoxville, Knoxify.com, 2011 Dogwood Arts Festival Co-Chair. Lucky husband and dad to 3 sweet girls.

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