What is Long-Term Care (LTC) and Who Needs It?

Long-term care refers to services that support individuals with chronic illnesses or disabilities who are unable to care for themselves over an extended period, addressing both their medical and non-medical needs.

About 70% of people who reach age 65 are estimated to need long-term care at some point in their lives, and approximately 20% will require care for more than five years. Long-term care may be needed due to factors such as chronic illness, disability, injury, cognitive impairment, or aging. As the population ages, the demand for long-term care is expected to rise, making it a crucial issue for individuals and agents to address.

Approximately 10,000 people in the U.S. turn 65 every day, a trend expected to continue as the baby boomer generation retires. This demographic shift will impact healthcare, social security, and the economy. It underscores the need for planning for long-term care, as the likelihood of needing it increases with age.

The Financial Cost of Long-term Care

Long-term care can be costly, and the top concern for many in retirement is running out of money. Expenses for long-term care, such as caregiving services, medical expenses, home modifications, transportation, lost income for caregivers, and opportunity costs can add up quickly. Careful planning, including purchasing long-term care insurance, saving for potential care costs, and working with a financial advisor, is crucial to ensure adequate resources.

According to the Genworth Cost of Care Survey 2023, the national median cost for a private room in a nursing home was $116,800 per year, and the median cost for a home health aide was $75,504 per year.

The Emotional and Mental Cost

Approximately 42 million Americans have provided unpaid care to someone age 50 or older in the past 12 months. Caring for someone who needs long-term care can have significant mental and emotional challenges for caregivers. It can lead to stress, burnout, depression, isolation, guilt, resentment, financial strain, and a loss of identity. Caregivers may feel overwhelmed, exhausted, and disconnected from their social networks. Caregivers need to prioritize their mental and emotional well-being by seeking support, taking time for self-care, and engaging in activities that bring them joy.

What is Your Long-term Care Plan?

By not having a long-term care plan, your family becomes your long-term care plan. Long-term care provides ongoing help for people who need assistance with daily tasks because of their age, illness, or disability. It includes medical, social, and personal care and can be given in different places like nursing homes, assisted living facilities, or at home. It helps people keep their independence, quality of life, and dignity while also supporting their family and caregivers.

With more people living longer and having chronic health issues, long-term care is becoming increasingly important for the healthcare system. Schedule a meeting with me today to discuss your long-term care coverage options.

Additional Resources

Genworth Cost of Care Survey

National Institute on Aging

Administration for Community Living

U.S. Department of Health & Human Services

What Care Costs (use sponsor code LTC)

The Agony of Putting Your Life on Hold to Care for Your Parents

Concourse Financial Group LTC Handbook

Nashville Public Television: Reimagining LTC