Before you come to the rash conclusion that long term care is just for old people and nursing home payments, I want to tell you that 80% of people who need long term care get it in their home. Everyone should have a plan for long-term care. And with Americans living longer than ever, this could mean needing some extra help with everyday activities not only as you age but if you are disabled. The benefits of long-term care insurance go beyond what your health insurance may cover by reimbursing you for services needed to help you maintain your lifestyle if age, injury, illness, or a cognitive impairment makes it challenging for you to take care of yourself. In this article, we would like to share some additional information about long term care and long term care insurance that you may not know.

  • 70% of people 65+ will need long term care at some point in their lives.
  • Medicare doesn’t pay for unskilled help with daily living
  • Women outlive men by 5 years, so they are more likely to live alone when they are older and will need assistance.
  • According to a 2015 study by AARP and the National Alliance on Caregiving, about 43.5 million people in the US had been an unpaid caregiver in the last 12 months.
  • 58% of long term care caregivers have intensive responsibilities like assisting with bathing or feeding
  • Chronic conditions like diabetes and high blood pressure make you more likely to need long term care.
  • 8% of people ages 40-50 have a disability that could require long term care service
  • The cost of home health aide service is about $20.00 per hour on average. According to a survey published by the MetLife Mature Market Institute*.
  • An assisted living facility cost is about $123.00 per day an average of $3,813.00 per month.
  • Adult daycare facility services are about $70.00 per day an average of $2,170.00 per month.
  • Semi-private room nursing home care is $235.00 per day an average of $7, 148.00 a month
  • Private room nursing home care is $267.00 a day or $8,121.00 per month on average

So while these average prices provide guidance, an individual assisted living facility can give you a firmer and more detailed figure for your situation.

People Usually Buy Long-term Care Insurance for Two Reasons

  • To Protect Savings – Long-term care costs can deplete a retirement nest egg quickly.
  • To Give More Choices for Care – The more money you can spend, the better the quality of care you can get. If you have to rely on Medicaid, your choices will be limited to the nursing homes that accept payments from the government program. Medicaid does not pay for assisted living.

How Much Long-term Care Insurance Costs On Average

A single 55-year-old man in good health buying new coverage can expect to pay around  $2,050 a year for a long-term care policy with an initial pool of benefits of $164,000, according to a 2019 price index from the American Association for Long-Term Care Insurance. Those benefits compound annually at 3% to total $386,500 at age 85. For the same policy, a single 55-year-old woman can expect to pay an average of $2,700 a year. The average combined premiums for a 55-year-old couple, each buying that amount of coverage, are $3,050 a year.

Rollins Insurance represents multiple A-rated insurance companies to make sure we deliver the most competitive rate packages to our clients in Kentucky and Ohio.

Contact us (859-781-7283) for more information or get a free quote!

About Rollins Insurance 

Rollins Insurance is an independent insurance agency providing our clients the best prices with the most coverage possible since 2008. We represent multiple A-rated insurance companies to make sure we deliver the most competitive rate packages to our clients in Kentucky and Ohio. We find that most people are under-insured and over-paying when we meet them. We love what we do and our primary business is Personal Auto, Homeowners, and Life and Health insurance. We are a family-owned and managed business that specializes in providing needs-based insurance services.
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