14 Dec, 2007
Emergency Funds, Retirement Planning
I have often written, hinted, cajoled and begged in this blog for you to get on track with Long Term Care Insurance (LTCi). No, I will not share personal experiences or client experiences in this write up. Rather, here is a compilation of statistics on the subject. When you have convinced yourself of the need, please contact us …
Only 12% of Baby Boomers have adequate resources to pay for long term care services.
(2005 MetLife Mature Market Institute Survey of Baby Boomers)
54% of Baby Boomers mistakenly believe that Medicare will pay for long term care services, and 31% expect Medicaid to pay for this care.
(2005 MetLife Mature Market Institute Survey of Baby Boomers)
National Average LTC Costs in 2006:
Nursing Home private room- $70,912 annually (up 2.2% from 2005)
Assisted Living Facility, one bedroom- $2,691 monthly (up 6.7% from
2005)
Home Health Aide- $25.32 per hour (up 13% from 2005)
(Genworth Financial 2006 Cost of Care Survey)
The average nursing home stay (2.4 years) will cost nearly half a million dollars($468,960) by the year 2030.
(Kiplinger’s Retirement Report, March 2004)
Two-thirds of single people and one-third of married couples exhaust their funds after just 13 weeks in a nursing home. Within two years, 90% will be bankrupt.
(2004 Field Guide, National Underwriter 2004)
Nearly 58% of group long-term care claimants are younger than age 65, and the average age of claimant is age 53. 66% received care at home while 17% received care in nursing homes. Top 5 claims are cancer, stroke, neurological disease, dementia, and multiple sclerosis.
(2006 Unum Provident Corp profile of claims activity)
7.6 million Individuals are receiving home care services.
(basic statistics about home care, National Association for Home Care and Hospice 2004)
5 million of the 12 million Americans who need long term care are working-age adults.
(“Prepare for the Unthinkable: Long-Term Care” MSN Money, August 2005)
Over 50% of all Americans will need long term care in their lifetime.
(Americans for Long Term Care Security, August 1999)
For those age 65 and over, 70% will need long term care at some point in their lives.
(American Society on Aging, February 2007)
Current life expectancy for a newborn American is 77.6 years. A Stanford University biologist has predicted life expectancy will increase by 1 year each year between 2010 and 2030.
(CDC, BBC News)
The odds of losing everything in a house fire, 1-in-1200.
The odds of experiencing a major auto accident, 1-in-240.
The odds of needing long term care at some point in your life, 1-in-2.
(Life Health Advisor Magazine, April 2002)
84% of Americans have had at least some experience with nursing homes – either as a patient or a visitor and 46% say a family member or close friend has been in a home in the past three years.
(Senior Journal, July 2005)
Medicare generally doesn’t pay for long term care.
(www.medicare.gov, 2005)
Nearly one in five unpaid caregivers (19%) in America provide “constant care” of at least 40 hours of care per week. Of those who provided constant care, 80% are women.
(2006 Genworth Study, “The Impact of Long Term Care on Women”)
41% of people do not think they will have enough money to cover their potential long term care expenses as they age. 31% stated that they were unsure.
(2006 Wall Street Journal Online Survey)
Check out our other blog, the Wealthy Future Blog, to learn all the principles of Missed Fortune, as outlined by best-selling author, Doug Andrew. The articles, audio and video programs will provide information which you will find both enlightening and empowering!
You can also visit our website at Founders Group to learn more about how we can help you optimize your assets or provide you with any financial advice.