27.3% of all Americans will reside at some point in their lives in a nursing home
70% of all Americans after age 65 will need some type of long-term care
10% of all Americans younger than 65 will require some care in a nursing home, in fact
40% of current patients receiving long-term care are under age 65 from accidents or debilitating illness
The median length of stay in a nursing home before death is 5 months
The average length of stay is longer at 14 months due to a small number of people with longer stays
53% die within 6 months of nursing home admission, 65% die within 1 year
The current cost for Nursing Home Care is $200/day in Arizona, or $6,000 a month
About 60% of nursing home residents rely on Medicaid to pay their long-term care costs.
Many people don’t get to Nursing Homes, but many still need Home Care, Assisted Living, Adult Day Care, Alzheimer’s facilities, Respite Care, or Hospice Care. Anyone is a candidate who loses one or more of the basic activities of daily living (ADLs) such as dressing, bathing, eating , toileting, continence, transferring (getting in and out of bed or chair), and walking.
A recent study found:
People are receptive to their financial advisors initiating discussions about long-term care.
People know that insurance is the best bay to address the long-term care issue.
People are not comfortable addressing the financial risk of long-term care without the intervention of financial advisor, and their planning reveals this.
The main reason people purchase long-term care insurance was the desire to avoid being a “burden” on their family.
So based on our known facts, and the behavioral study of how people approach long-term care insurance, if we don’t initiate the conversation then who will?
The question of Long-Term Care Insurance is all about your risk tolerance, genes, life expectancy, and wealth.