"Just the Fact Mam" Who need LTCi Services

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For years I have used the Nursing Home Statistics provided by the CA Partnership for LTC.  to support the planning for long-term care, Which is: 

Of the People who reached age 65: Men 1 out of 3, Women 1 out of 2 will need a Nursing Home before death.  The average stay will be 2.5 to 3 years.  For everyone who needs a Nursing Home 4 will be taken care of at home.

I have said it so many times it has lost it's meaning.   So hear are some new stats that I hope will bring back into focus the growing long-term care need.

According to the U.S. Department of Health and Human Services, in 2007, about nine million men and women over the age of 65 will need long-term care services. By 2020, 12 million older Americans will need long-term care. Most will be cared for at home. In fact, an agency study revealed that family and friends are the sole caregivers for 70 percent of all elderly Americans needing long-term care. The research also showed that people who reach age 65 have a 40 percent chance of entering a nursing home during their lifetime. About 10 percent of the people who enter a nursing home will stay for five years or more.

A research project concerning the likelihood of needing long-term care services was conducted by Milliman USA, (an actuarial consulting firm). The results of the study were published in the December 2005 edition of LTCi Sales Strategies magazine:

Out of every 1,000 65-year-old policyholders:

- 449 will need LTC services
- 106 will need LTC for > 2 years
- 59 will need LTC for > 3 years
- 34 will need LTC for > 4 years
- 20 will need LTC for > 5 years

The length of stay also varies significantly depending on the policyholder’s gender and whether the policyholder is married or single. The two “extremes” for a 65-year old are shown (that for a married male (lowest) and a single female (highest)):

Out of every 1,000 married 65-year-old males:

- 302 will need LTC services
- 20 will need LTC for > 2 years
- 12 will need LTC for > 3 years
- 7 will need LTC for > 4 years
- 4 will need LTC for > 5 years

Out of every 1,000 single 65-year-old females:

- 555 will need LTC services
- 70 will need LTC for > 2 years
- 51 will need LTC for > 3 years
- 35 will need LTC for > 4 years
- 23 will need LTC for > 5 years

Joe Friday on Dragnet always said "Just the facts mam."   

These are the facts.  So what? Facts mean little unless accompanied with "Personal Experience".    Again emotion triumphs  logic.   Facts don't motivate-real life experiences do.

 It is Life that occurs while weighing the facts. 

November is Long-Term Care Awareness Month

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“When faced with two equally tough choices, most people choose the third choice: to not choose.".....Jarod Kintz

The question is not if you'll need care, but when.  The best time to plan for care was yesterday. However , you'll never be younger and probably not healthier than today.

You can't avoid aging, it happens.  With good health habits you can enjoy a long life.   Still the potential of needing assistance improves the longer you live.  Your options when in good health are two: 1. Taking on the risk yourself  2. Transfer the risk with: Traditional Long-Term Care Insurance or Life Insurance with a long-term care rider.  When you lose your health your options are still two: 1. Take on the risk yourself. 2 Transfer your estate to become a "ward of the state".  

The simple truth is LTC insurance remains the best option to protect individuals and their families.  The insurance and financial industry needs to be more effective in educating the public that medical and disability benefits do not cover LTC, as well the limitations of government programs, like Medicare and Medi-Cal.  

It is vital to take action, be proactive in long-term care planning.

“A year from now you may wish you had started today.”.....Karen Lamb