With more people in America living longer, the demand for long-term care is expected to rise dramatically in the coming years. Here are some key facts on a little-known aspect of End-of-Life planning.
Question: What is long-term care exactly?
Answer: Long-term care helps people suffering from disabilities or serious illnesses that prevent them from performing life’s basic functions (like cooking or bathing).
Question: Where does long-term care take place?
Answer: Long-term care is often provided in a person’s home by family members or by paid caregivers. It can also take place in adult day-care programs or in residential settings (like assisted living facilities or nursing homes).
Question: Who receives long-term care?
Answer: It may surprise some to learn long-term care is not just for seniors. Of the 11 million people in America who need long-term care, nearly 43 percent are younger than age 65.
Question: What are the odds I will need long-term care in the future?
- 30% of people turning 65 will need less than two years of care
- 40% of people turning 65 will require more than two years of care
- 30% of people turning 65 will not require any long-term care
Question: Who pays for long-term care?
Answer: In most cases, Medicaid and out-of-pocket spending pay for it. Family or friends often provide informal (unpaid) care for older adults as long as they can. This trend will be magnified as the amount of older people who need long-term care grows.
Question: How prevalent is long-term care insurance in today’s market?
- Only 12% of long-term care is paid by private insurance companies
- Less than 10% of Americans are saving for long-term care