Where Will You Be When You Get Older?

Read Time: 5:54
Published: Jan 20th, 2021
Where Will You Be When You Get Older?

Home is where your hat hangs, especially when you are younger. As you get older, you start to think more about your future and retirement. Even when you are in your 40s or 50s, too many people ignore retirement planning and the consequences of aging. Aging happens, and time goes by quickly. 

Take a moment and think about your future retirement. Are you prepared? Where will you live once you retire? Once you need long-term health care, where will you receive your care? Who will provide that care? Will you have enough money to pay for quality care without placing stress and burden on your family?

Most people want to age in place. Some people will downsize, but the desire to stay at home increases with age. The importance of being at home has received much attention with the COVID-19 virus crisis. 

A recent AARP survey shows that 3 out of 4 adults age 50 and older want to stay in their homes and communities as they get older. However, when asked about the likelihood of that happens, most say it won’t.

Stay in their home. Ages 18-49: 53%. Age 50+: 76%.

The survey showed 76% of the respondents' age 50+ desire to stay in their home; only 53% of those aged 18-49 felt this was important. The survey occurred before the COVID-19 crisis. Only 46% anticipate they will be able to accomplish that goal.

Majority of Care Provided at Home

According to the National Care Planning Council, about 73% of all long-term care is provided at home, usually by family caregivers who do so without pay. The pressure on these non-paid spouses or adult children is tremendous. Caregiving is both physically and emotionally demanding.  

These non-skilled care services provide very basic help at home. As a care recipient's needs increase, the skills required to provide the care increase as well. These family caregivers often lack the physical ability to perform the work or lack the skills to do so safely. 

The family will bring in paid care if the resources are available. The paid caregivers are better able to provide help with bathing, incontinence issues, lifting, and other services that we are likely to need as we get older.

Of course, not all care recipients are old. Health events and accidents can create a need for long-term care at any age. People require long-term care services and supports due to illness, accident, or the impact of aging. This also includes supervision due to dementia. The risk of needing extended care increases with age.

The American Association for Long-Term Care Insurance (AALTCI) says nearly 8 million Americans currently receive home health care services. At the time of their publication, only 1.8 million people were in nursing homes. 

About 15.5% of those in nursing homes are under age 65, according to the most recent information provided by The Centers for Medicare& Medicaid Services. For those people with Long-Term Care Insurance, 4.5% of those receiving benefits are under age 70, according to the AALTCI. Most people start purchasing policies in their 50s.

LTC Insurance is Paying Benefits for Care at Home

Just over 51% of Long-Term Care Insurance claims start at home. Only 23% of LTC Insurance claims start in a nursing home. Interestingly enough, 43% of these claims ended with care at home. The data suggests people with Long-Term Care Insurance are better able to stay in their own homes.  

long term care insurance claims paid for home care

Home care providers are less expensive than a nursing home unless you require care around the clock. For these individuals, assisted living, memory care, or nursing homes are still better alternatives. However, if family members cannot provide care (and generally, they cannot do so for any length of time), how do you pay for the care you may need in the future?

Cost of Care is Expensive and Going Up

The LTC NEWS Cost of Care Calculator says the national average nursing home cost in 2021 is $109,683 a year for a private room, a little less for a semi-private room. The base cost of an assisted living facility averages $52,451 a year nationally. Home care providers average $55,004 a year based on a 44-hour week.

The cost increases, generally as labor costs increase. You can access the current and future cost of care services where you live by clicking here.

When planning for long-term health care remember it is both a cash flow issue and a family issue. You will need the cash flow to pay for your choice of care, and you need services that allow your family the time to be family. 

Affordable Long-Term Care Insurance will provide the guaranteed tax-free benefits that you will be able to use for the type of care you want, including in-home care that most people want. You will be able to maintain control and independence and avoid being dependent on family and friends. 

Choice? You Want Choice?

If you want a choice – and who doesn't wish to have a choice – you should have an LTC policy in place. When should you buy a policy? 

Ideally, when you are in your 40s or 50s. Long-Term Care Insurance is medically underwritten, so you need relatively good health. Each insurance company has its own rules, so be sure to seek an experienced Long-Term Care Insurance specialist to help you navigate all the companies. 

Don't believe what you read about policies being expensive. Long-Term Care Insurance is custom-designed, and premiums can vary well over 100% between companies for the same coverage. 

Get Accurate Quotes with Professional Recommendations

Too often, a family talks to an insurance agent or financial advisor and gets "a quote". They see one insurance company with one policy design. There are insurance companies that offer costly policies. Do not assume this reflects all the available options.

Long-Term Care Insurance is custom designed. A qualified Long-Term Care Insurance specialist representing the major companies will find you affordable options based on your age, health, and other factors. 

Find a qualified and trusted specialist by clicking here.

Today's Long-Term Care Insurance is rate stable, with most states having rate stability rules in place. Also, today's premiums are priced based on the low-interest-rate environment we have experienced for some time. 

Partenrship LTC Insurance Offers Additional Asset Protection

If you are lucky enough to live in the 45 states that offer Partnership Long-Term Care Insurance, you will enjoy dollar-for-dollar asset protection. Partnership LTC Insurance may be one of the biggest secrets in retirement planning. Read more about this vital asset protection feature by clicking here.

Keep in mind as you get older you will experience changes in your health. You will see changes in your body as well. You may even start experiencing cognitive decline. Many of these changes will require you to need help with everyday activities. 

Preparing for the future costs and burdens of aging will safeguard your income and assets and reduce the stress and burdens otherwise placed on those you love.

Take action to enjoy the peace-of-mind knowing your wishes will come true as you get older. Find a policy and plan for a successful future retirement, hopefully in your own home. 

About the Author

An LTC News author focusing on long-term care and aging.

Editor's Note

LTC NEWS offers many resources to learn about the available options and learn about long-term health care issues. Click here and discover these resources. 

This comprehensive guide is an outstanding first-read -  The Ultimate Long-Term Care Guide. Be sure to take notes so you can ask the appropriate questions when you speak with a qualified and trusted Long-Term Care Insurance specialist.

Seek LTC Insurance Specialist

This conversation is one you should have with a specialist as most financial advisors, or insurance agents lack the knowledge required in underwriting, policy design, tax implications, and claims. Find a specialist who works with the major companies by clicking here.

Discussion Points with a Specialist

When you speak with a specialist, be sure they discuss with you the following:

  • Partnership – Most states offer special policies that provide dollar-for-dollar asset protection. The Long-Term Care Insurance Partnership Program might be one of the best-kept secrets in retirement planning. Make sure the specialist explains this program and how it might help you.
  • Tax incentives – There are federal tax incentives available for some people. If you own your own business, be sure to ask.
  • Health Savings Accounts – If you have an HSA, you can use the pre-tax money in your account to pay for the premium.
  • Asset-Based or Hybrid policies – These are life insurance or annuities with a rider for long-term care. Careful, only a handful are actually a long-term care benefit. However, one of these policies can provide you with the flexibility of both a long-term care benefit or a death benefit. They are expensive but can be paid with a single premium.
  • Health and Family History - Make sure the specialist asks you detailed questions about your health, family history, and retirement plans. Underwritingcriteria vary with each insurance company. If they are not asking you detailed questions, then find another specialist.

LTC NEWS Cost of Care Calculator

Take a moment and find the current and future costs of long-term care where you live. This information helps you see the financial impact of long-term care on your savings and helps you decide the amount of coverage appropriate for you in your situation. 

Find your state and use the LTC NEWS cost of care calculator by clicking here.

Be Published on LTC NEWS

LTC NEWS offers many resources to help families address the consequences of long-term care, aging, health, caregiving, and other retirement issues. You can be part of the effort to help educate consumers throughout the U.S. and around the world.

Write a story for publication on LTC NEWS and let America hear what you have to say. Be sure your article fits the LTC NEWS target audience of adults 40-70.

Topics can include stories on:

  • Aging
  • Caregiving
  • Health
  • Long-Term Care
  • Retirement Planning

There are numerous other related topics, as well. You can even promote yourself, your business, and your website or blog. It must have editorial content exclusive for LTC NEWS and cannot be just an advertisement. It can include links to other sites, and you can share the article link once published on your website or social media.

Email your story idea or article: newsroom@ltcnews.com or click here

Marketing and Advertising on LTC NEWS

Readers of LTC NEWS are researching retirement issues, including aging, health, caregiving, and long-term care. Other readers seek information for a parent or other loved one who is experiencing declining health or aging issues and require extended care.  

There are many marketing opportunities available, including sponsored content articles. Sponsored content offers you a long-form way to sell yourself, your company, and your ideas.

LTC NEWS can be an affordable way to drive consumers to your website or business - or promote products and servcies.

Learn more about how LTC NEWS can help you market your business - click here.

 

LTC News Contributor James Kelly
James Kelly

Contributor Since
August 21st, 2017

LTC News author focusing on long-term care and aging.

About the Author

LTC News author focusing on long-term care and aging.

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