Long Term Care Statistics

For folks that prefer 'just the facts', below is a collection of facts to help develop your understanding of Long Term Care and how it is paid for.

Remarkable Stats

  • The lifetime probability of becoming disabled in at least two activities of daily living or of being cognitively impaired is 68% for people age 65 and older. [ AARP. Beyond 50.2003: A Report to the Nation on Independent Living and Disability, 2003, (11 Jan 2005). ]
  • Nearly two-thirds of Americans over age 65 will need long term care at home, through adult day health care, or in an assisted living facility or nursing home.* – * AARP Public Policy Institute (2007). "Long – Term Care Trends"
  • Consider this: there is a 1–in–1200 risk of having a fire that will cause major damage to your home. A 1–in–240 risk of having an accident that will destroy your car. Compare those statistics to the 1–in–3 risk that the average person will spend 2.9 years in a nursing home. (3) 3. The 9 Steps To Financial Freedom: Practical and Spiritual Steps So You Can Stop Worrying, Suze Orman, Dec. 1, 2001.
  • National Median – Private Room in Nursing Home – $213/day, more than $75,000 per year Medicare Does Not Cover Long Term Care
  • Although Medicare does provide health coverage for those over age 65, it provides limited Long Term Care coverage. In fact, in 2000, only about 14 percent of all Long Term Care expenditures were covered by Medicare. (1) 1. "Long Term Care: Aging Baby Boomer Generation Will Increase Demand And Burden On Federal And State Budgets," U.S. General Accounting Office, March 21, 2002.

Reasonable Health Required to be approved

  • Health is important to getting approved.
    Percentage of applicants for insurance declined due to health reasons. 2010 LTCi Sourcebook – American Association for Long Term Care Insurance.
    • Younger than 50 – 9.5% declined
    • 50–59 – 14% declined
    • 60–69 – 23% declined
    • 70–79 – 45% declined
    • Older than 80 – 66% declined
  • More than two–fifths (42%) of people age 65 and over reported a functional limitation.
    Eighteen percent had difficulty with 1–2 Activities of Daily Living. Five percent had difficulty with 304 ADLs. And three percent had difficulty with five to six ADLs. [Source: 2009 Long Term Care Insurance Sourcebook, American Association for Long–Term Care Insurance]

The Burden of Family Members Providing Care

  • Statistics about Primary CareGivers from Genworth Beyond Dollars study
    • Average Age – 53
    • 42% provided care in their home for 3 years or more
    • 57% of primary caregivers had to dip into their own retirement funds or savings
  • Financial Impact
    • 88% said their household income was reduced by an average 34% due to their long term care event
    • 60% reported a need to cut back on family expenses after a long term care event
    • 63% reduced their savings by an average of 61%
  • Emotional Impact
    • 42% felt stress with their spouse
    • 35% reported stress with their children

Costs

LTC Insurance Policy Premium Costs (U.S. Department of Health and Human Services, National Clearinghouse for Long–Term Care Information (2007).

  • $1,982 per year for ages 50–59
  • $2,249 per year for ages 60–64
  • $2,539 per year for ages 65–69
  • It is important to note that while Long Term Care insurance can seem expensive, just one year in a nursing home is often more expensive than 20 or 30 years of Long Term Care insurance premiums. (1)1 "Long Term Care – Your Financial Planning Guide, " Phyllis Shelton, April, 2003.

Have Questions?

If at any point you would like to speak with someone for more information,
contact 1-800-258-7041 or fill out our Request Information form!