3 in 4 need more than health careWhy Americans Need
Long-Term Care Insurance:

3 in 4 Americans will need long-term care services at some point in their lives, according the the Department of Health and Human Services.

Social Security and Medicare do NOT cover the costs of long-term care services!

With over 3.5 million baby boomers turning 55 every year, there is a quickly increasing demand for long term care services and insurance to protect American's retirement nest egg.

Someone in every family (parents, spouses or children) is almost sure to need extended care someday ... and it costs more than they may realize.

If Americans have assests they want to protect, and the insurance premiums would not jeopardize their lifestyle, they will need your advisement on the pros and cons of various types of protection.

Consider these sobering facts:

12 million people are currently receiving long-term care and growing. 82% being cared for at home or in Assisted Living. Only 18% in nursing homes. (1)

39% of people needing long-term care are working age adults, ages 18 – 64. (2)

Average stays:

Nursing Home = 2.6 years (3)
Home Health Care = 4.5 years (4)
Assisted Living = 18 months (5)
Alzheimer’s patient Life span = 4.9 years on average – 5.7 for women, 4.2 for men (6)

Long-term care costs are projected to triple in 20 years. (7)

Current Costs: Imagine what they'll be in 10, 20, or 30 years!
Home Health Care
- $66,000/year ($18/hour)
Assisted Living - $30,288/year ($85/day)
Adult Day Care - $20,075/year ($55/day)
Nursing Home - $67,276/year ($184/day) (8)

Group Health Insurance and Medicare pay for Skilled Care only.

Average number of days = 23. (9)

Medicaid limits options for type and place of care.

Must meet asset and income guidelines. (10) - (Spend down to $1,500)

Aging of America:

78 million baby boomers start turning 65 in 2011
35 million over age 65, to grow to 70 million by 2030
Fastest growing segment – 85 and over will grow to 8.5 million
75,000 people over age 100, projected to triple in 20 years.
(11)

Risk factors
NOTE: The Medicaid percentage is sure to dwindle as the federal and state
governments restrict help to the truly poor.


For almost all Americans, except the very wealthy or poor, long-term care insurance is vital for protecting one's estate, lifestyle, and peace of mind.


References:
(1) O’Shaughnessy, Carol, Congressional Research Service, testimony to Senate Aging Committee, June 28, 2001
(2) O’Shaughnessy, Carol, Congressional Research Service, testimony to Senate Aging Committee, June 28, 2001
(3) MetLife 2004 Market Survey of Nursing Home and Home Care Costs as published on Consumer Affairs.com 10/4/2004
(4) MetLife Mature Market survey, 2003
(5) Assisted Living Federation of America, 2002
(6) Alzheimer’s Association, 4/6/2004
(7 ) MetLife 2004 Market Survey of Assisted Living Costs as published in Provider Magazine News.
(8) MetLife 2004 Market Survey of Nursing Home and Home Care Costs as published on Consumer Affairs.com, 10/4/2004
(9 ) Centers for Medicare and Medicaid 2002 statistic “The Nursing Facility Sourcebook, 2001”, American health Care Association, p. 71s
(10) Ohio Medicaid & Elder Law Planning 2003
(11) Administration on Aging, 2/1/2005