Long Term Care Insurance

Long term care insurance as a corporate benefit has increased dramatically in popularity. The statistics on long term care are both alarming and eye-opening:

Important Statistics

• A retiree has a 43% chance (52% for females; 33% for males) of entering a nursing home.
• Employer-sponsored long-term care plans are growing an average of 47% per year.
• For every person living in a nursing home, there are four others receiving care at home.
• Nursing home populations are 71% female.
• Today, 50% of men who live to 65 can expect to live past 80, and 50% of women who reach 65 can expect to live beyond age 84.
• The average length of a nursing home stay is two and a half years.
• The average cost of a nursing home is about $55,000 a year. With the average stay being two and a half years, the cost totals more than $139,500.
• 27% of "baby boomers" think they are covered by long term care insurance, but only 6% of the elderly actually have this insurance.
• A modest assisted-living unit for one person can run about $27,000 a year.
• By 2020, total long-term care expenses are projected to be nearly $260 billion annually.
• In 20 years, an average nursing home stay will cost $265,000.
• Medicaid: Before it begins to cover the cost of care, elderly people must deplete enough assets to qualify for aid.
• Medicare only covers six percent of long-term care costs nationally.
• The risk of a home being destroyed by a fire is 1 in 1,200.
• The risk of a major loss from an automobile accident is 1 in 240.
• The risk of incurring a major long-term care expense is 1 in 5.

In light of these facts, an employer sponsored Long Term Care Insurance program adds significant value to an employer's benefit offering. This promotes employee loyalty and assists in attracting and retaining qualified employees. Some employers make available Long Term Care Insurance plans on a voluntary basis whereby the premiums are paid for by the employees, however, since the employer arranges and makes available this plan to its employees, a significant discount is typically available to the employees- and their families.

Click here for a 1 Financial Marketplace Associate insurance expert to assist you with your long term care insurance needs.