Long-Term Care is a Woman’s Issue Not Just on Mother's Day
Mother's Day has come and gone but we should always be looking on how to honor mom and not just on Mother’s Day. Long-Term Care is truly a woman's issue and no matter if your mom (or the woman in your life who happens to be a mom) happens to be 40 years-old or 65 years-old a plan for the financial costs and burdens of aging should be a major concern. Despite the fact that women are both the first line caregiver and the person who lives longer and requires long-term care, few women or families adequately plan for the impact of extended care.
The American Association for Long-Term Care Insurance (AALTCI) a national consumer advocacy and education group, puts it this way:
“Women live longer than men. Women have higher rates of disability and chronic health problems. Thus, women are far more likely to need long-term care. And, as you'll see from some of the facts and statistics below, women clearly need long-term care. Many (far too many) are impoverished as a result.”
The AALTCI says that women who reach age 65 can expect to live an average of 20 more years and those who reach age 75 an additional 13 years. A third of long-term care insurance claims begin between ages 70 and 79; over half (55%) begin after age 80.
More than two-thirds of Americans age 85 or older are women. Eight out of 10 centenarians are women.
About 79% of 65-year-old women will need some long-term care during their lifetime, according to Georgetown University’s Health Policy Institute. On average, these women will end up needing 3.7 years of care. Fewer men (about 60%) age 65 are likely to need care over the rest of their lives, and it will average about 2.2 years.
Women continue to live longer than men are the primary consumers of long-term care, and as family caregivers provide more hands-on care (such as feeding, showering, and toileting) than men.
The cost of long-term care is high and is not paid for by health insurance or Medicare. They will only pay a small amount of skilled care and only if you are improving. Medicaid, the medical welfare program, will pay for long-term care but only if you have few assets or you exhaust assets while paying for care. The nation average of an assisted living facility according to the Genworth national survey is $3620 a month. Care at home is running about $3900 a month and a skilled nursing home about $7700 a month. Depending on where you live the cost of care can vary.
Since the cost of long-term care is high some advance plan to address the financial costs and burdens of aging is a critical part of a future retirement plan. Long-Term Care will impact you, your family, your savings and your lifestyle. It also impacts women even more than men. The burden this places on your family is tremendous. Affordable Long-Term Care Insurance will protect your savings and ease that burden.
Knowing the facts perhaps the best gift for mom, or your wife is long-term care insurance. However, don’t wait till a person is old and sick. You must medically qualify for these policies and they are prices based on the AGE and HEALTH at the time of application. The best time is age 40 to 65. Having a policy in place will also add peace-of-mind for everyone in the family. Act before retirement for the best and most affordable options.
Many LTC policies have shared benefits so a couple can together have an affordable plan and ease the burden on their children down the road. Long-Term Care planning is an essential part of your future retirement plan. Not only will it protect your savings (401(k), IRA, 403(b)) but will add peace-of-mind today and decades to come.
One word of warning: While a long-term care policy is very important don’t forget the flowers ... a gift most women will enjoy ... and not just on holidays, birthdays and anniversaries.