As Alaska Ages, Long-Term Care Costs Soar—LTC Insurance Helps Families Stay Afloat
The world is experiencing a significant demographic shift as populations age at an unprecedented rate. This trend presents challenges and opportunities across nations; Alaska is no exception.
Recent data highlights the growing need for long-term care solutions and the role of LTC Insurance in mitigating associated challenges. In fact, recent data is showing how vital Long-Term Care Insurance is in helping Alaskans access their choice of quality care without wiping out their saving and creating a burden for those they love.
Aging in Alaska and Global Aging Trends
According to the World Health Organization, by 2030, one in six people globally will be aged 60 years or over, increasing from 1 billion in 2020 to 1.4 billion. By 2050, the population aged 60 years and older is expected to double to 2.1 billion, with the number of persons aged 80 years or older projected to triple to 426 million.
Alaska's demographic landscape is also shifting. The state's population grew by 0.3% from 2023 to 2024, reaching 741,147 on July 1, 2024.
Notably, the 65-and-older population increased by 5% during this period, while the 18-to-64 age group declined by 1%.
Projections indicate that Alaska's 85-and-older population is expected to increase by 500% between 2023 and 2050, surpassing 30,000 seniors. Approximately one-third of this group is anticipated to experience Alzheimer's and related dementias.
The Role of Long-Term Care Insurance
An aging population presents economic challenges, including increased long-term care costs. In Alaska, according to an LTC News survey of long-term care costs, the state is among the highest in the country.
Like the rest of the world, Alaska faces similar concerns regarding aging and long-term care and its impact on families and finances.
Long-Term Care Insurance has become a vital tool in addressing the financial and emotional challenges associated with aging. It covers services such as home care, adult day care, assisted living, memory care, and nursing home services.
In Alaska, LTC Insurance has been instrumental in providing residents with access to quality care. According to the latest data from AHIP, $10,050,000 was paid in benefits in the most recent reporting year, totaling $89,822,000 since the inception of LTC Insurance in the state.
These figures are likely higher today, with reports indicating that leading insurance companies disbursed over $14.1 billion in LTC Insurance benefits nationwide in 2023.
Alaskan families benefit directly from the protections offered by LTC Insurance. It safeguards their income and assets, ensuring access to preferred quality care and significantly easing the financial, physical, and emotional stress that long-term care can impose. This is particularly crucial in Alaska, which has some of the most expensive long-term care costs in the country.
Alaska Faces Surge in Long-Term Care Costs
Long-term care costs are very costly in Alaska and are projected to increase rapidly in the decades ahead. The average cost of in-home care in the state (based on a 44-hour week) is $5753 monthly. Base assisted living costs before surcharges average $6427 per month.
While most long-term care is outside a nursing home, some people do require one. Nursing home costs are the most expensive, and in Alaska, they are the highest in the country, as they average $25,236 per month for a private room, but it is much higher in some areas of the state.
For example, in Anchorage, the average home care rate is $6239 a month, base assisted living costs before surcharges average $7476 monthly, and a private room in a nursing home averages $27,239 monthly.
Is Now the Time for Alaska Residents to Purchase LTC Insurance?
Alaska residents who want to protect their income and assets should consider adding a Long-Term Care (LTC) policy to their retirement strategy. Remember that an LTC policy does more than just protect your cash flow and safeguard assets. It provides the means to pay for your choice of quality care without placing the burden of caregiving or managing care on loved ones.
However, Medicaid may provide long-term care benefits for those with limited financial resources, making an LTC policy unnecessary.
Consulting with a qualified LTC Insurance specialist can help individuals design a personalized plan and find the most cost-effective coverage among available insurers. Few specialists in the country are experts on LTC Insurance, and a specialist can show you accurate quotes from all the top companies offering long-term care solutions.
Alaska offers several LTC Insurance options, including traditional policies and hybrid policies with a death benefit. Start your research by reviewing the LTC News Long-Term Care Insurance Education Center.
The best time to acquire an LTC policy is before you retire; most people do so between ages 47 and 67.
Peace of Mind for Alaska Families
Alaskans have discovered that LTC Insurance also provides a sense of security and peace of mind. Those with an LTC policy find they are well-prepared to manage the challenges associated with aging and long-term care needs.
Alaskan families benefit directly from LTC Insurance, which protects their income and assets while ensuring access to their preferred quality care. By covering long-term care expenses, an LTC policy alleviates the financial, physical, and emotional strain that aging-related and chronic care, including dementia, places on families across the state and the nation.
The aging society and increased longevity due to advances in medical science is a global phenomenon with local implications. In Alaska, the rising elderly population underscores the importance of financial planning and the role of LTC Insurance in ensuring access to quality care.
As the state navigates these demographic changes, proactive measures and informed decisions will be crucial in addressing the challenges and opportunities of an aging population.