Long-Term Care Awareness Month

Long-Term Care Awareness Month

According to National Center for Health Statistics, the life expectancy of a newborn American male in 1900 was 46.3 years, while the life expectancy of a newborn American male today is 75.6 years. November is Long-Term Care Awareness Month, and with American longevity increasing annually, long-term care insurance continues to grow in importance.

The American Association of Long-Term Care Insurance (AALTCI) along with the U.S. Congress is on a mission to make people aware of the risks and costs associated with long-term care. A 2012 report from the AALTCI found that the majority (56 percent) of new claims under these policies are for home care – not nursing home care (31 percent) as many consumers believe. While nursing home care definitely ranks at the high end of the long-term care cost spectrum, long-term care insurance (LTCI) may also help cover the cost of in-home services from nurses’ aides, home health aides and therapists or services in an assisted living facility.

As the AALTCI points out, you protect against other risks like car accidents, house fires and medical emergencies; so why wouldn’t you protect yourself from potential long-term risks that could impact you and your loved ones? And just like any other insurance, you don’t want to put off the purchase. AALTCI urges Americans to buy LTC insurance before age 65 to avoid the high costs associated with waiting. Your age and health are important factors that determine the cost of LTC protection. The younger your age and better your health when you purchase coverage, the less expensive it will be. Also, good health today could help secure discounts that won’t change even if your health does in the future.

Many Americans falsely assume that government programs will pay for all their LTC needs or that LTC coverage means you will be forced into nursing home care. In fact, the AALTCI says Medicare only pays for skilled care, while Medicaid only covers those whose assets are at or below state-required levels. Also, the majority of people who need long-term care remain in their own home or in their community.

Financial Advisors are committed to helping you protect yourself and your family against the financial risks associated with long-term care. Creating an inclusive retirement plan includes planning ahead for all long-term care expenses. Call a financial advisor today to create or review your retirement plan and discuss the importance of planning for long-term care.

FINANCIAL FACTS

Later For You – The average age at which currently retired Americans were able to retire is 58.6 years. The average age at which currently working Americans expect to retire is 68.4 years, according to 1,546 Americans surveyed in January 2013 for this statistic (source: Northwestern Mutual, BTN Research). 

Retirees – The maximum retirement benefit paid by Social Security to an individual retiring in 2014 at the full retirement age of 66 will be $2,642 per month or $31,704 per year (source: Social Security, BTN Research).   

Old Folks – An estimated 9,200 Americans will turn 65 years old today and will be eligible for Medicare for the first time. Between 9,200 to as many as 11,400 daily birthdays of folks reaching age 65 are projected to be repeated each day for the next 16 years (source: Government Accountability Office, BTN Research).