New Data Shows Length of Nursing Home Use. Data Can Be Used for Planning.

Most long-term health care is delivered at home or in assisted living facilities, but the need for a nursing home can still be financially devastating for American families.

New data released by the American Association for Long-Term Care Insurance (AALTCI) shows the length of Long-Term Care Insurance claims for nursing homes in California. The data helps define an often-asked question - how long will I need long-term health care?

"Most people will need long-term care as a result of living a long life, into their 80s, 90s, and beyond," said Jesse Slome, director of the AALTCI, a national consumer education and advocacy group.  

According to the data, someone between age 80 and 95 has a 46.5% likelihood of needing care for between 1 and 12 months. 

"Some 24% will need care for between 13 and 24 months, and 29.4% percent will need care for 25 months or longer," said Slome.

Nursing Home Use for Those with Substantial Needs

Today nursing home use is often used when a person needs some skilled services in addition to custodial care - or a person with substantial needs or severe cognitive impairment. 

Most Long-Term Care Insurance claims start with in-home care. Still, policies typically are comprehensive and pay for levels and types of care, including nursing homes and memory care facilities. 

Care Costs are Rising Fast

The cost of all long-term health care services is increasing dramatically due to increasing demand and higher labor costs. However, nursing homes are the most expensive.

The LTC NEWS Cost of Care Calculator shows the current state average cost of a nursing home in California $135,576 a year - or $11,298 a month. These costs vary throughout the state, as well as nationally. For example, the average nursing home cost in Bakersfield is $10,594 a month California Long-Term Care Resources | LTC News. In-home care, adult day care centers, and assisted living facilities will be less expensive, although by no means' cheap.'

Compare Bakersfield, California, with Cape Girardeau, Missouri, where an average nursing home runs $6,301 a month. But understand the costs are rising rapidly nationwide, and planning is essential for asset protection no matter if you end up in a nursing home or need care at home or in assisted living.

Risk of Needing Care Increases with Age

The risk of needing long-term care increases with age, and the U.S. Department of Health and Human Services says if you reach age 65, it is about a 50/50 risk. What is unknown is when you may need care and for how long.

"There's no way to predict what an individual man or woman will need," Slome admits. "But after years talking to consumers and professionals, here's what I do know for sure; some Long-Term Care Insurance is always going to be better than none. It will give you and your family more options when you want and need them most."

Plan for LTC Costs Before Retirement

Experts suggest obtaining coverage before you retire, and most people purchase a policy in their 50s. Long-Term Care Insurance is custom-designed, and premiums are based on the amount of benefits you apply for and your age, health, family history, and other factors. 

LTC Insurance, however, is about money and not about time. There are no real 'benefit periods,' just a benefit account, which can grow with inflation - What is a Benefit Period on a LTC Insurance Policy? | LTC News.

"You have benefits as long as there are dollars remaining, so it's not a specific time frame of when benefits end. Secondly, most people have other income and assets that they can use to pay some of the cost of care with insurance also paying some," Slome explained.

More Than Just About Money

Long-term care costs can be financially crushing. However, long-term care planning is more than just about money. Most people who purchase Long-Term Care Insurance want to do more than just protect assets. According to surveys, consumers want to reduce the burdens otherwise placed on adult children. Consumers are also concerned about access to their choice of care services, especially access to in-home care.

Seek the assistance of an experienced Long-Term Care Insurance specialist who works with the top companies. They can help you shop and find the most affordable coverage based on your age and health.