According to projections from the United Nations, the average life expectancy in the U.S. for 2024 is 79.11 years. This continues an increase trend since the peak of the COVID-19 pandemic. Furthermore, the average life expectancy is projected to increase each year for decades.
Although it is certainly good news that people are living longer, the challenge this brings is having the financial resources to live comfortably and, more importantly, if some form of care is needed. As reported on longtermcare.gov someone turning 65 today has a 70% chance of needing some type of long-term care.
Likewise, a study by KFF (formerly the Kaiser Family Foundation) found that fewer than half of adults say they have had a conversation with a loved one about who will take care of them if they need help with daily activities or how they would pay for it. Likewise, only about 40% of adults are confident they have the financial resources to pay for the care they might need as they age.
Research from the Health and Human Services Department in 2022 revealed that, on average, a 65-year-old will incur more than $120,000 in long-term care costs
Long-Term Care Insurance Can Help
This is exactly where a long-term care insurance plan can come into play. Many people don’t realize that Medicare does not cover long-term care and, to get assistance from Medicaid, basically all other savings must be extinguished.
Having the right Long-Term Care Insurance policy protects finances in the event of needing professional services. The impact on a healthy spouse to financially and physically support a partner can be damaging. But Long-Term Care Insurance can provide the means to take care of the partner without bankrupting the healthy spouse.
Traditional Long-Term Care Insurance
A traditional long-term care product works much like policies for home or auto. As long as premiums are paid, the coverage continues. But also, like home and auto insurance, rates can go up. And the earlier the policy begins, the lower the rate.
Hybrid Policies
Another option, and one that is gaining more traction recently, are hybrid plans. In these instances, the long-term care policy is combined with another benefit, usually life insurance (although sometimes it is mixed with an annuity).
Oftentimes, hybrid policies are paid as a lump sum or a fixed amount broken into annual payments.
Learn More
The long-term care market continues to evolve, and more and more life insurance carriers are making changes to their product portfolio as they look to provide solutions.
LeClair has teamed with Securian and DBS to show you how the long-term care options are changing. Join us for an educational webinar on Tuesday, October 15, 2024 to learn about the LTC planning, options, and how to start a long-term care conversation with your clients.
We’ll talk about:
- Industry Trends & Statistics
- What options exist for LTC care
- Why a plan for long-term care is essential
- What to look for in evaluating clients’ needs
- What’s new in the space
- And more!
Please use this link to register for this amazing opportunity!
