Long-Term Care Insurance—why the need is booming
What is Long-Term Care (LTC)?
It’s the assistance that is provided to people who
are unable to perform the Activities of Daily Living
(ADLs) that healthy, fully-functional people do
independently and on a daily basis.
Who needs LTC?
Research shows 40% of all Americans will need Nursing
Home care after age 65.(1)
The U.S. Government Accountibility
Office estimates 13 million people currently receive
Long-Term Care.(1)
How much does it cost?
The average Nursing Home/Nursing Facility stay of
2.4 years costs more than $180,000 nationwide.(2)
Home care is also expensive, with skilled workers
receiving $19 per hour.(2)
All these costs could climb dramatically in the
coming years as baby boomers reach retirement age.
Who pays for it?
In most cases, LTC is paid for by the person receiving
care, or by their family. Medicare provides only
limited Nursing Home care and only for a limited
time, following a hospital stay. Health plans such
as PPOs and HMOs generally cover only acute care,
not the daily assistance that long-term care entails.
How does Long-Term Care Insurance (LTCI)
help? LTCI allows
the policyholder to choose a daily benefit amount,
elimination period, and policy duration that fits
their budget. Benefits begin when it is verified
that substantial assistance is required with two
out of six activities of daily living (ADLs), or
when the insured is suffering from a severe cognitive
impairment that requires substantial supervision.
A licensed health care practitioner must certify
to this. No prior hospitalization is required. The
services received must be part of a written plan
of care prepared by a licensed health care practitioner
of the insured’s choosing. This removes what may
be the biggest worry for people as they age—it gives
them control over how they will live the final years
of their lives and reduces the fear they will spend
down their savings or become a burden on their families.
What are the future prospects for LTCI
marketing? The need
for LTC is expected to grow exponentially as the
baby boom generation ages. And thanks to medical
advances many Americans can expect to live to an
advanced age, decades past retirement, giving them
the potential to spend down their retirement savings
and then face long-term care in their final years.
The conclusion: LTCI is a timely product that continues
to grow in importance and demand throughout the
balance of your career.
To find out more about earning
renewals up front with CarePlus,
call Jim Thomson, Vice President Sales, at (800)
597-7751 x500.
For Agent Use Only.
Not for Public Distribution.
