Long Term Care Risk

The current Long Term Care risk is about 14 million people of all ages currently need care and close to 40% of those people are under the age of 65.  By 2020, the Long Term Care risk for people below and above 65 years old will be about 16.8 Million.  By 2050, around 27 Million people above the age of 65 will need care.

Wall Street Journal states this about the Long Term Care risk,

“… a couple turning 65 has a 75% chance that one of them will need Long Term Care.”  At this rate, an entire family can be affected, placing the children at risk of a negative inheritance, also according to the Wall Street Journal.

Comparing the Long Term Care Risk

The National Academy of Elder Law Attorneys did a study comparing the risk of financial devastation brought on by Long Term Care, with the risk of financial devastation brought on by a major automobile accident or a house fire.  According to that study, the Long Term Care risk is:

  • Automobile Accident: 1 out of 240 [0.4%]
  • House Fire: 1 out of 1,200 [0.08%]
  • Long Term Care: 1 out of 2 [50%]

Further research of the Long Term Care risk found that 20% of all people age 65 or older need help performing their normal activities of daily living (ADLs).   At age 85, the estimate grows to about 50%.  The worst case scenario in terms of financial burden involves entering a nursing home. The Long Term Care risk of spending time in a nursing home at various ages are:

  • 45 or older 36%
  • 65 or older 49%
  • 85 or older 56%

The above Long Term Care risk can be concerning, especially for those who have not planned what they will do if they or their spouse ever needs Long Term Care.  Long Term Care Insurance is not right for everyone; however, those who want to ensure that they are taken care of properly or who have assets to protect may want to consider Long Term Care Insurance.

At LTC Tree we work with the top carriers and are ready to help you shop the market to find the absolute best Long Term Care Insurance policy at the best price.  Take a few minutes to fill out the form below to get your Long Term Care Insurance quotes today.