Gender Gap. Women Receive Majority of Long-Term Care Insurance Benefits

If you do an internet search on long-term care, it will return a substantial amount of information. Longevity is a significant retirement planning concern. As you prepare for retirement, not planning for the financial costs and burdens associated with aging will negatively affect your future income and lifestyle.

Aging is a significant planning issue. As long-term health care costs continue to rise, the effect on families and their finances will substantially impact everyone - especially women.

Many more Americans own Long-Term Care Insurance to protect their future retirements and reduce the stress placed on the extended family. In 2021, the major insurance companies paid over $12.3 Billion in benefits from these policies to American families.

According to the National Institute on Aging, several factors influence your risk of needing long-term health care services. These factors include aging, being female, marital status, unhealthy lifestyles, poor diet, lack of exercise, and family history. Women are also more likely to live alone when they get older, which adds to the risk.

Women Receiving Benefits from Long-Term Care Insurance

It should be no surprise that women are the biggest beneficiary of these policies. According to a Long-Term Care Insurance claims study, nearly two-thirds of benefits went to women. The American Association for Long-Term Care Insurance (AALTCI), national consumer education and advocacy group, conducted the study.

Planning for long-term care has always been especially important for women. Generally, women are the first caregivers. Many women have juggled caring for their young children and later their parents, sometimes grandparents, and other family members. They also become the first caregiver for their husbands, as men usually require care before a woman does.

In general, women outlive males by roughly five years in terms of life expectancy. Women are more likely to require long-term health care and incur higher long-term care costs since they live longer. Often, the male spouse has passed away or is elderly and unable to provide care for their wife.

Women make up more than two-thirds of Americans who are 85 or older. Women can anticipate living an additional 20 years on average after turning 65 and another 13 years after turning 75. Age-related disabilities are increasingly common, and long-term care services are more necessary.

Women also get impacted by needing care services, but they don't have the built-in support that a man might have. Women's longevity means that by the time, statistically, a woman requires long-term care, the husband is either unable to provide care or has already passed away.

Almost 70% of women aged 75 or older are widowed, divorced, or never married, compared to only about 30% of men. Single women, or those without children, lack build-in support to help them as they face changes in their health, bodies, and mind. Even with family support, the challenges to family members are numerous. 

Family caregivers face physical and emotional stress. Without family support, there is no family advocate on your behalf. 

Caregivers

Don't forget that no matter the gender of the care recipient, most caregivers are women. In the United States, family members, friends, or other unpaid caregivers provide 83% of the assistance to older people. The Alzheimer's Association reports that half of all caregivers who provide help to older adults do so for someone living with Alzheimer's or another dementia.

Other data from the Alzheimer's Association reveals the consequences of caregiving. They report that 30% of caregivers are aged 65 or older. Approximately two-thirds of caregivers are women; more specifically, over one-third of dementia caregivers are daughters.

Women are Impacted More Without a Long-Term Care Plan 

The American Association for Long-Term Care Insurance reviews claims data regularly. Jesse Slome is the association's director; they look at the top seven insurance companies to review trends. LTC Insurance claims reveal the benefit of policies for women. 

Women account for 64% of Long-Term Care Insurance claims, men for 36%.

The issue of long-term care has long been considered a women's issue. Dementia is a significant risk as someone ages, and most of those with Alzheimer's or other dementia are women. 

Women are likely to need long-term care for a variety of reasons that generally result from living longer lives as well as conditions like dementia and Alzheimer's disease.

Multiple generations of women are impacted because of long-term health care. Generally, women become the first caregivers. Without Long-Term Care Insurance, family members become caregivers even before paid care is sought. As men usually decline first, the wife is often the first caregiver. By the time a woman requires care, the husband has often either pass-away or is not in a position to be a caregiver.

Suzi Orman, a nationally known financial expert, has long recommended that American families purchase Long-Term Care Insurance. She points out this importance on her website www.suzeorman.com.

Given our increasingly long-life spans and the fast-rising cost of health care, an LTCi policy can be the linchpin of a secure retirement.

She says because of the risk, women should be sure to plan ahead and consider Long-Term Care Insurance.

And it is doubly important for women to consider. According to the Society of Actuaries, a woman alive at age 65 has a one-in-three chance of still being alive at age 90. And if that 65-year-old woman happens to be in very good health the odds of being alive at 90 rises to more than 40%. In other words, there's a good chance you could live a very long life.

Long-Term Health Care a Growing Problem

According to the U.S. Department of Health and Human Services, nearly half of people who reach the age of 65 will need long-term health care. These costs will come from your savings and income as most of the costs are not covered by health insurance, including Medicare and Medicare Supplements. Only a small number of days of skilled care is covered. Unless you plan in advance, the costs will impact your family, savings, and lifestyle.

Many people are planning. The realization that the impact of long-term care on their savings and family members can be devastating drives more people to consider options like Long-Term Care Insurance.

A recent poll conducted by the Associated Press-NORC Center for Public Affairs says most Americans understand this risk.

Several Reasons People Purchase Long-Term Care Insurance 

As more Americans purchase Long-Term Care Insurance, more people are using the benefits of these policies. There are many reasons people give as to why they purchase Long-Term Care Insurance, and these are the most common, according to surveys:

• Burden – People don't want to burden their spouses and adult children when they get older. Being a caregiver is stressful and impacts the caregiver's health, career, and family.
• Asset Protection – Usually, the primary concern is protecting the lifestyle of the other spouse. Often, the wife. Generally, a man will experience a long-term health care event before the woman, and the wife may have many more years of lifespan afterward. The protection of savings to maintain the spouse's lifestyle is essential. Legacy is also important for some people. The ability to leave something to children and grandchildren can also be a consideration. Most states offer Long-Term Care Partnership policies that provide additional asset protection.
• Choice of Quality Care – Long-Term Care Insurance provides the tax-free resources to pay for care in your desired setting, either at home, adult day care facilities, assisted living facilities, memory care, or nursing homes. This means you can select the location and quality of the care.
• Independence and Control – Adult children often make decisions on behalf of Mom or Dad. With Long-Term Care Insurance, you will remain in control without putting the responsibility on others. Managing a plan of care can be almost as stressful as being a caregiver. Most Long-Term Care Insurance policies provide case management which allows the family time just to be family. 

Better Lifestyle Increasing the Number of Men Needing Long-Term Care

While long-term care is an issue that impacts women, men play an essential role. Men are taking better care of themselves, and as they do, their risk of needing long-term health care increases because of longevity. Both men and women share one thing in common; they generally are concerned about their family's welfare.

Many companies offer shared spousal benefits. 

• Are Shared Long-Term Care Insurance Policies Available for Spouses/Partners?

Several other options are available which can match your concerns. Asset-based "hybrid" policies exist which provide death benefits if you are lucky enough never to require care. Some companies offer limited-pay or single-pay policies where you only pay the premium one time or in ten years. Business owners can take advantage of tax benefits, and once a person retires, the premium has been paid in full for life. 

• Types Of Long-Term Care Insurance Policies & Which Is Best for You

Start Research Before Retirement

The best time to plan is before retirement when you enjoy better health and premiums are much lower. Most people obtain their coverage in their 50s. Every insurance company has its underwriting rules, so an individual may not be eligible for coverage with one company but can easily obtain coverage with another. A qualified Long-Term Care Insurance specialist can assist you in finding appropriate coverage and providing accurate quotes from the top companies. Find a qualified specialist by clicking here.

You can start online research by finding your state's current cost of care and the availability of partnership plans and tax incentives. The LTC NEWS Cost of Care Calculator shows you the current and future cost of extended health care where you live and provides important state-specific information. 

Long-Term Care Insurance is an affordable way to address the problems of getting older and the burdens placed on those you love. The polices work by giving you the resources to protect savings and ease the burdens on those you love.