What Are the Odds of Needing Long Term Care?
Jan 13 2011 08:00 PM | Phyllis Shelton in Protecting Your Family
If care isn’t needed at a younger age, chances are greater than 60% at age 65 that we will require extended care at home or in a facility.1 A recent industry report shows that the average long-term care insurance claim is 2.8 years,2 but the caregiving time for Alzheimer’s or stroke victims can be many years. At the national average cost of almost $75,000 a year for ten hours of home care at $20 per hour, it doesn’t take long to wipe out a family’s assets.3 Take a look: 
Note: "Income Needs" is the portion of household income needs that the assets had been relied upon to provide and assumes annual inflation of 3%. "LTC Expense" is based on a typical annual cost and is subject to 5% annual inflation. "Investment Yield" is assumed at 4% annually after taxes.
Some plans provide you with cash to hire informal caregivers like friends and family members who cost less than $20 an hour.
1Kemper et al, “Long-Term Care Over an Uncertain Future: What Can Current Retirees Expect?” Inquiry Vol. 42, Winter 2005/2006, p. 342
2Corliss, Gary, et al. Society of Actuaries, LTC Experience Committee Intercompany Study 1984-2004, November 2007
3Long-Term Care Insurance Carriers Cost of Care Surveys, 2009-2010
Phyllis Shelton is the President of LTC Consultants, a Nashville-based consulting company specializing in long-term care insurance consumer education and training since 1991. She experienced first hand the implications of long-term caregiving with her grandfather, mother and brother. Because the need is so great, she is now focused on helping consumers who don't have a local agent acquire long-term care insurance.
0 Comments
Featured Article
Make your “Joe” – save a “Benjamin”
- posted by Doreen Kukral
The “Benjamin” I’m talking about is Ben Franklin… the face on the one hundred dollar bill. And what if I told you it’s possible to save $100 a month by changing just one daily habit…Your coffee… yes, your daily “Joe”.
If your day typically starts by dropping in at your favorite coffee spot, you’re likely spending a few dollars on your “Joe” or even more on the fancy concoctions. Add an afternoon pick-me-up, a spouse or partner, and you’re spending some serious cash, each and every day.
Featured Discussion
A Special Thanks to Suze
by: jhamilton
This is just a special thank you to Suze for creating her simple to use and understand "Must Have Documents." I just went and had my revocable trust notarized and instantly I felt a sense of relief.