- 5.4 million Americans are living with Alzheimer’s disease.1
- The financial impact from this type of long term care event is massive: 88% of care-givers said their household income was reduced an average of 34%.2
- In 1965 when Medicare became law, Part A (hospital expenses) was projected to cost $9.1 billion by 1990; the actual cost was $67 billion.3
- 70% of seniors will need long term service and support because of physical and cognitive impairment. The average length of time a senior adult will need assistance with activities
of daily living is 3 years.4
- From 2011to 2029, Baby-Boomers (those born between 1946 and 1964) will turn 65; during this time period, 10,000 people will turn 65 every day.4
- People who need long term care will more than double by the year 2050 (from 12 million in 2010, to 27 million in 2050.)4
- 48% of people 40 years of age or older say that they will need long term care as they age but only 35% say they’ve set aside funds to pay for their long term care needs.4
- According to data released in 2013 by the Institute for Health Metrics and Evaluation, American women live longer than men (81 years on average versus 76 for men.)¹ This longevity translates
- potentially more unhealthy years on average for women — 11 years compared to 9.7 for men.
- 70% of people over age 65 will require some care at some point in their lives.5
- $750,000 is the projected average cost for 3 years of long-term care 30 years from now.6
- “Long-term care is a blind spot in many clients’ portfolios. In fact, 85% of people don’t have a plan for covering the costs of long-term care.”7
- Using a conservative definition, 62.1% of all bankruptcies in 2007 were caused by the cost of medical care. Most medical debtors were well educated, home-owners, in white-collar
- 3/4 had health insurance.8
- According to the National Association of Baby Boomers, by 2030, 54% of the 78 million Baby Boomers will be women.
- A healthy female, age 65, has a 67% chance she will live to age 90 and a 38% chance that she will live to age 95.9
- Approximately 72% of Baby Boomers whose parents had long-term care insurance said it was a “good value” for reasons such as increasing quality of life, preserving the parents’ nest egg,
and lessening the family’s financial contribution to care. Of those Baby Boomers whose parents did not have coverage, 71% said that long term care coverage would have benefited their
- According to the Employee Benefit Research Institute, 47% of early Baby Boomers (now 56 to 62 and nearing retirement age) are likely to exhaust their retirement savings.
- A recent AALTCI survey of 10,200 people enrolled in group LTC plans found: 36% chose daily benefit levels of $100 – $149; 35.5% chose daily benefit levels of $150-$199; 16.5% chose benefit
levels of $200 or more per day.
- 56.5% of LTCI policies were purchased by people aged 55 to 64
- 33.8% of these had a three-year benefit period
- 36.0% carried daily benefit amounts between $100 and $149
- 92.0% carried an elimination period of 90 days
- 33.8% carried 5% compound inflation protection
- $83,950 is the average annual cost for a private room at a nursing home according to the most recent cost of care study done by Genworth Financial.
The average annual cost for LTCI is equal to half the amount of 1 month in a nursing home or 1 month of professional in-home care.
Top reasons for the purchase of long term care insurance:12
1.To protect assets
2.Security/peace of mind
3.To cover the cost of LTC services that may come in the future
4.Don’t want to be a financial burden on family
Employer provided long term care insurance plan information:13
- 12,000: Approximate number of employers offering long-term care insurance
- 2 million: Approximate number of employees covered by employer-sponsored long-term care insurance plans
- Research estimates that about 15 percent of Americans older than 70 suffer from dementia, a condition that includes Alzheimer’s disease. The number of seniors with Alzheimer’s disease
is projected to triple by 2050, afflicting as many as 14 million in the United States.14
2 Beyond Dollars: The True Impact of Long Term Caring. Genworth Financial. 9/30/2010.
3 Talking Points, One-a-Day, Compiled by Mark Zinder
4 Visualizing Halth Policy, Kaiser Family Foundation. August 28, 2013. Volume 310, Number 8.
5 U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care
Information, www.longtermcare.gov, September 2008
6 Based on John Hancock’s Cost of Care Survey, conducted by LifePlans, Inc., 2011 and an assumed
rate of inflation of 4.1% based on the average annual increase in the Consumer Price Index for
All-Urban Consumers (CPI-U), obtained from the Bureau of Labor Statistics of the U.S. Department
of Labor, for the 50-year period ending 12/31/10
7 John Hancock’s online survey conducted September 2011 by Matthew Greenwald & Associates, Inc.
8 The America Journal of Medicine, Clinical Research Study 2009
9 Genworth Financial, A2000 Basic ANB Mortality table with Scale AA mortality improvement.
10 Mathew Greenwald & Associates, Market Research Survey, 2010
11 American Association for Long-Term Care Insurance, 2012 LTCi Sourcebook.
12 Mutual of Omaha’s 2013 Consumer Study: Understanding Long-Term Care Buyers
13 American Association for Long-Term Care Insurance, 2012 LTCi Sourcebook.
14“Improving Dementia Long-Term Care: A Policy Blueprint,” http://www.rand.org, Provided by RAND Corporation