WASHINGTON — The American Council of Life Insurers (ACLI) urges all Americans to plan for their long-term care needs during Long-Term Care Awareness Month, which starts today.
“Long-term care costs represent a significant threat to Americans’ financial and retirement security,” said ACLI President and CEO Susan Neely. “About 70% of Americans age 65 and older will need long-term care services and support at some point in their lives. Paying for the high and rising costs of care can quickly exhaust hard-earned retirement savings and put a strain on a family’s financial future.”
According to the Genworth Financial Cost of Care Survey 2019, 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.
Because of these high costs, family members often take on the role of caregiver for a parent or spouse who needs assistance. And many do this while working. According to AARP, an estimated 60% of caregivers aged 50 to 64 years old are working full- or part-time.
“Long-term care insurance offers a solution that can help people cover the high and rising cost of care,” Neely said. “Helping people care for their loved ones is life insurers’ most critical mission. Long-term care insurance is vital protection that helps individuals and families care for themselves and those they care about most.”
Consumers can purchase coverage solely for long term services and support. 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 280 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 news and views site, IMPACT, at impact.acli.com.
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