The Cost of Long-Term Care Just Got More Expensive
November 20, 2019
November is National Long-Term Care Awareness Month, which makes it an ideal time to discuss long-term care planning with your clients and prospects — especially in light of the continually rising cost of long-term care services. Genworth Financial’s most recent survey reported these cost increases since 2018:1
- Homemaker services, up 7.14%
- Home health aide services, up 4.55%
- Adult day health care costs, up 4.17%
- Assisted living facility care, up 1.28%
- Nursing home care for a private room, up 1.82%
“The findings underscore the need for individuals and families to plan ahead for who will care for them and how they will pay for it,” said Gordon Saunders, a Genworth senior manager who oversees the Cost of Care Survey.2
Everyone has a long-term care story. Even if it hasn’t happened to their own family, most likely your clients know someone who has been affected by the cost associated with a serious medical condition. Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services in their remaining years.3
When making a decision regarding the potential need for long-term care protection, the financial burden is just one of many considerations. The impacts can extend far beyond dollars, affecting the careers and personal lives of your clients, as well as their families.
There are a lot of misconceptions in the marketplace about paying for long-term care costs and a growing number of options to help fund that care, including the use of life insurance. The combination of life insurance with a long-term care (LTC) or Chronic and Critical Illness (CCCR) rider can be a cost-efficient way to help clients plan for their future.
Contact me today for information and resources to empower you to begin the discussion of long-term care with your clients and how life insurance with long-term care benefits can help protect their assets and financial independence should they have the need for long-term care, and a death benefit to leave to their family if they don’t. Discover AE Life’s suite of long-term care marketing materials HERE.
1 Genworth. Oct. 8, 2019. “Genworth Cost of Care Survey 2019.” https://pro.genworth.com/riiproweb/productinfo/pdf/131168.pdf. Accessed Nov. 11, 2019.
2 Michelle Singletary. Washington Post. Oct. 29, 2019. “For seniors hoping to age in place, the cost of in-home care just got a lot more expensive.” https://www.washingtonpost.com/business/personal-finance/for-seniors-hoping-to-age-in-place-the-cost-of-in-home-care-just-got-a-lot-more-expensive/2019/10/29/7f9b63a4-fa4c-11e9-8190-6be4deb56e01_story.html. Accessed Oct. 31, 2019.
3 LongTermCare.gov. U.S. Department of Health and Human Services. Oct. 10, 2017. “How Much Care Will You Need?” https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html. Accessed Nov. 11, 2019.
Insurance guarantees rely on the financial strength and claims-paying ability of the issuing insurer. LTC benefits are available in the form of accelerated death benefits or through a rider. They are not a replacement for LTC insurance and may not be available on all life policies. These benefits may require an additional fee and are subject to eligibility requirements.