Consumers Over-Estimate Cost of Long-Tem Care Planning

November is Long-Term Care Awareness Month and the Congressional Resolution says it best. "Congress . . . urges the people of the United States to learn more about the potential risks and costs associated with long-term care and the options available"

Over 10 million Americans, or almost five percent of the total adult population, need long-term services and supports to assist them in life's daily activities.  The annual cost is is nearly $200 billion.  Long-term care services are generally not paid by health insurance policies and Medicare typically provides only limited coverage.  As a result, individuals and their families pay an increasing amount of the cost.

Care in one's home or that of a family member is increasingly popular. A report by the American Association for Long-Term Care Insurance (AALTCI), the industry trade group, reveals that 86 percent of people with long-term needs live at home.  Only 14 percent live in nursing facilities.

Last year, some $8.5 billion of costs were paid  by long-term care insurance and some 8.25 million individuals currently own protection according to AALTCI.  The trade group's study reveals that less than one-in-ten adults are aware of what long-term care insurance protection costs, their  planning options or ways to reduce the cost.

There are numerous ways to save when pricing long-term care insurance. By taking advantage of discounts on can reduce the cost sometimes substantially. Good health can save 10 to 20% and married couples and even unmarried adults can sometimes save an additional 15 to 40% annually.  The percentage and rules determining discounts vary from one insurer to another.


Other ways to reduce the cost of long-term care insurance is selecting a longer elimination period or select a 3 or 5 year plan as opposed to longer terms of coverage.  


For more information on planning for your or your loved ones long-term care needs call Kristine at 303-671-9777 or send her an email at kristine@c-hall.com to request your complimentary planning guide.