Alzheimer's: The Disease that Could Bankrupt Americans

Every 66 seconds this year, an American will develop Alzheimer's disease, according to the Alzheimer's Association. Planning for the financial costs and burdens of aging is essential to retirement planning.
Updated: February 17th, 2020
James Kelly

Contributor

James Kelly

Every 66 seconds this year, an American will develop Alzheimer's disease, according to the Alzheimer's Association annual report. By the year 2050, that number is expected to double to one every 33 seconds. A CNN story reports that experts say without additional funding and a breakthrough, Alzheimer's could be the disease that breaks the nation's health care bank. In 2017, for the first time, total costs for caring for those living with Alzheimer's and other dementias hit $259 billion -- over a quarter of a trillion dollars.

Much of the cost is placed on the American family since most long-term care costs are not paid by health insurance or Medicare or supplements. Most long-term care is custodial care or supervision for those with cognitive decline. Unless someone has Long-Term Care Insurance, the costs will come out of pocket, or their family will become a caregiver.

Medicaid, the medical welfare program, will pay for care, but you must either be poor to start or exhaust assets by paying for care yourself until you have little or no money left. That program was never intended to pay for long-term care. Don't expect the government to add additional long-term care benefits since budget issues and the large number of people who are expected to need long-term care services in the decades to come will make that nearly impossible. Boomers and Generation X'ers who have savings to protect will need to plan or be subject to being forced to pay for their future care out-of-pocket.  

There's more. The Alzheimer's Association's report adds another startling statistic, the hidden cost of caregiving. In 2016, those who took care of loved ones with dementia provided an "estimated 18.2 billion hours of unpaid assistance, a contribution to the nation valued at $230.1 billion.

People Require Long-Term Care Due to Illness, Accident or Impact of Aging

Memory issues are only one of many reasons that impact people as they get older. The financial costs and burdens of aging places pressure on assets and stress on family members. 

The fact is long-term care is more than just about money. The impact on family creates emotional and physical issues as well. Affordable Long-Term Care Insurance will pay for the cost of quality caregivers and ease the burdens placed on family members. 

American Families Benefiting Today from Long-Term Care Insurance Benefits

Long-Term Care Insurance is already helping American families deal with the impact of longevity. In 2019, the top insurance companies paid over $11 Billion in benefits. These benefits help people stay in their own home and maintain control and independence. The family has the time to be family.

Despite these facts and the affordability of Long-Term Care Insurance, many people decide they won't plan. For some it is denial. For others, they choose to "wait" until they need it. The problem, you must health qualify in order to get a plan in place. 

LTC Insurance is Affordable but Premiums Vary Dramatically

Premiums are based on not just the benefits you choose but your age and health at the time of application. Many experts suggest the best time to obtain coverage is when you are in your 40s or 50s. However, a Long-Term Care Insurance specialist can find affordable options for those in their 60s, depending on your health.

Be sure to seek the help of a qualified and experienced Long-Term Care Insurance specialist. They can provide you with accurate quotes from all the major insurance companies. Perhaps just as important, they can give you professional recommendations, so you don't buy more than what is appropriate for you and your family.

Find a trusted Long-Term Care Insurance specialist

Find the current and future cost of long-term care services in your area by using the LTC NEWS cost of care calculator.

LTC NEWS also has a comprehensive Long-Term Care Insurance guide. Read it by clicking here. https://www.ltcnews.com/resources/guides/the-ultimate-long-term-care-insurance-guide

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