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LONG TERM CARE

The single largest financial risk affecting retirees: Long-Term Care.

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Are You Protected Against The Greatest Risk In Retirement?

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Here are your chances after reaching age 65
(Based on remaining life expectancy)​

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LIFETIME POSSIBILITY FROM AGE 65 ON

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EVENTS THAT DO OCCUR:                FOR MEN          FOR WOMEN

  • MAJOR HOUSE FIRE                       2.2%                    2.6%

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  • SEVERE CAR ACCIDENT                15.5%                  18.0%

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  • BECOMING ADL DISABLED           44.0%                  72.0%

      OR COGNITIVELY IMPAIRED​

 

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Did you know?

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The likelihood of a 65-year-old having to enter a nursing home is much greater than his/her having an auto accident or having his/her house destroyed by a covered homeowners peril.

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The likelihood of a couple experiencing a long-term stay in a nursing home is 840 times more likely than their experiencing a total loss on their house and over 80 times more likely than their experiencing an automobile claim.  Most insure against these common catastrophe exposures, yet, most are not insuring against a risk that will most certainly happen to seven out of 10 couples.

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In order to adequately plan for the risk of long-term care, you have to know how much to plan for.  A common trap fallen into by planners is the average length of stay and current cost strategy.

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The cost to be planned for should be in terms of today’s costs inflated to the most likely date for admission.  Most 65-years-old are likely to be admitted to a nursing facility 15 to 20 years down the road.  The average annual inflation rate over the last twenty years for nursing home care in this country has been 6.3%. Twenty years down the road, the annual cost could be much higher (assuming that these historical trends continue).

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