In a recent Morningstar article on Long Term Care statistics, author Christie Benz, Morningstar’s director of personal finance and author of 30-Minute Money Solutions, outlined industry statistics you should know when planning your insurance needs in retirement.
According to Benz, “Ultimately, the decision about whether to purchase long-term-care insurance is a highly personal one, dependent on an individual’s or couple’s asset level and desire to leave a bequest, health history, and the peace of mind derived from having the coverage, among other factors.”
So what does some of the long-term care insurance and services look like by the numbers Benz researched?
- 8 Million People experience problems with daily living activities, i.e., bathing, dressing, washing, eating, and other basic needs.
- 13 Million Adults have difficulty living independently.
- 44% of men will need long-term care services during their lifetime.
- 58% of women will need those same services during their lifetime.
- 4% is the 5 year annual inflation rate in nursing home costs for private and semi-private rooms. If you do not have an inflation rider on your policy, it is worth 4% less each year you own it.
- $5,518 is the median total household wealth of people that have lived in a nursing home for 6 months or more. Do you think asset protection is important now?
- $450 Billion is the estimate value of unpaid care provided by friends and family members caring for a loved one.
- $7.8 Billion is the amount of claims paid for long-term care in 2014.
- 45% is the number of applications denied to applicants’ age 70-79 who put off planning and now have health issues to manage.
- 100% if you have not started planning, the time is now.
Contact your California Long Term Care Insurance Services specialist today for a no obligation conversation about your options. Start by filling out the form to the right and downloading your Free Guide.
Source: http://news.morningstar.com/articlenet/article.aspx?id=715947&part=1
