Long-Term Care Insurance

No well-planned retirement should be without long term care insurance. It is the very cornerstone of retirement security. - Suze Orman

The average life expectancy in the United States is 82 years for females and 77 years for males. According to 2020 data from the Administration for Community Living, nearly 70% of 65-year-old people will need some form of long-term care (LTC) during their lifetime. How much? The average care amount of care needed is 3.7 years for women and 2.2 years for men.

What Does Long Term Care Cover?

LTC insurance covers services for individuals with chronic illnesses, disabilities, or cognitive impairments such as Alzheimer's. Coverage is triggered when you cannot perform at least two Activities of Daily Living (ADLs)—bathing, dressing, toileting, transferring, continence, and eating—or require substantial supervision. Care may be given in your home, an adult daycare center, an assisted-living facility, or a nursing home.

Long-term care is not cheap, and Medicare doesn’t cover it.

Most people spend their working life accumulating money for retirement, but the high cost of long-term care can deplete a retirement nest egg quickly. Here are some rather shocking numbers from a 2019 New York Life Cost of Care Survey:

  • The average annual cost for In-home Healthcare is $50,918 for 40 hours of help per week.

  • The average annual cost for Assisted Living Care is $57,000 for one bedroom.

  • The average annual cost for a private Medicare-certified long-term nursing home room is $107,000.

Health insurance doesn’t cover long-term care, and Medicare only covers home health care for a short period of time.

LTC Insurance isn’t cheap, either, but it’s important to have

Just as long-term care isn’t cheap, long-term health care insurance can be pricey, but there are many options from which to choose that can lower costs, and the insurance may well be cheaper than not having it.

If you would like to have a discussion about LTC insurance, please contact us. Unlike agents, we’re brokers, so we represent numerous insurance carriers offering a wide range of products. More products means better solutions for you.

Our clients trust us because we focus on your needs; not our commissions. In fact, we get most our our new business from referrels because our clients trust us and recommend their friends and family to us.