WASHINGTON, D.C., (November 1, 2018) —The American Council of Life Insurers (ACLI) strongly supports Long-Term Care Awareness Month, an annual event sponsored each November by the American Association for Long-Term Care Insurance to educate consumers on the importance of planning for their long-term care needs.
The high and rising cost of long-term care services and supports presents a significant challenge to Americans’ financial and retirement security. Today, the median cost for a one-year stay in a private nursing home room is more than $100,000. In 30 years, this cost is projected to increase to more than $240,000. Home care is less expensive, but still costly: a visit by a home health aide today can cost more than $4,000 a month.
Paying these high costs can exhaust hard-earned savings. And, too often family members must postpone their lives and careers to care for an aging parent who cannot afford the cost of care.
“Paying for or providing long-term care services and supports is a growing strain on Americans and their families,” said Chuck Piacentini, ACLI vice president, insurance regulation and associate general counsel. “Long-term care insurance offers a solution that can help people cover the high and rising cost of care in a setting that allows them to live with dignity and without being a financial burden on their loved ones.”
Long-term care insurance is regulated by state insurance departments that protect consumers’ interests before and after they purchase a policy. Life insurers offer a variety of options to help consumers cover the cost of care in a nursing home, an assisted living facility or in their home.
Consumers can purchase coverage just for long term services and supports. They also can combine long-term care insurance with a life insurance policy or an annuity contract. These “hybrid policies” provide protection for long-term care and offer benefits to loved ones if long-term care benefits are not fully used. Life insurers are continuously exploring other innovative solutions to protect consumers against the financial impact of long-term care.
Throughout November, ACLI’s website will feature information for consumers on long-term care and long-term care insurance. Consumers should consult with a trusted insurance or financial advisor about the long-term care insurance options that are right for them.
The American Council of Life Insurers (ACLI) advocates on behalf of 290 member companies dedicated to providing products and services that promote consumers’ financial and retirement security. 90 million American families depend on our members for life insurance, annuities, retirement plans, long-term care insurance, disability income insurance, reinsurance, dental and vision and other supplemental benefits. ACLI represents member companies in state, federal and international forums for public policy that supports the industry marketplace and the families that rely on life insurers’ products for peace of mind. ACLI members represent 95 percent of industry assets in the United States.
To learn more, visit acli.com and our blog, ACLI Perspectives, at acli.com/perspectives.
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