Many people live in the moment, taking each day as it comes. As much as the “footloose and fancy free” approach can appear to be stress-free and living in the moment seems like a value, being unprepared when the unexpected happens can cause more stress in the long run. The truth is, when it comes to aging, many people do not consider the costs involved until it’s much too late. Long-Term Care Insurance is important to look into purchasing before we are in a position where we wished we had it.
Here are five reasons you need to consider having Long-Term Care Insurance.
In 1940, people only lived about 13 years after reaching age 65. Today, life expectancy for those reaching age 65 has increased to 20.4 years. So, with people now living until their mid-80’s, the higher the chances that they will need long-term care due to developing chronic conditions.
The Cost Divide
Today in America, approximately 11 million people of all ages require long-term care. However, only 1.4 million people reside in nursing homes. This is largely due to the financial burden that comes with assisted living and needing long-term care. Having Long-Term Care Insurance would help offset some of the expenses incurred when health issues necessitate having long-term care.
The Gender Divide
Women make up 58% of those who are older than 65 years old. But of those 58%, women actually comprise nearly three-fourths of the elderly who are living in nursing homes. Additionally, the majority of those female nursing home residents are widows. Though the thought of living without our mate isn’t something most people want to think about and plan for, having Long-Term Care Insurance in place will remove the financial strain of the decision when the times comes to make it.
Calculating the Need
Based on current estimates, 70% of people who reach age 65 are projected to need some form of long-term care at least once in their lifetime. Of those people needing long-term care, 20% of them will need it for longer than 5 years.
Looking Through Time
Current projections anticipate that the number of people needing long-term care in the future will be vast. The number of people aged 85 and older are expected to triple in number from over six million to over 18 million from 2015 to 2055. This growth during the next 40 years is certain to lead to an increase in the number of people who need long-term care.
None of us can predict the future. But, we can be prepared for the uncertainty that the future will certainly bring. Having a Long-Term Insurance plan in place will help alleviate the financial strain that assisted living facilities or long-term care costs can bring. If you have any questions or would like more information about the best Long-Term Insurance plan for you, our team at TAG Insurance and Financial Services would love to help! Give us a call today!