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April 27, 2003 at 08:00 PM
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Why are more people not buying long term care insurance to complete their retirement plan?
The biggest reason is that many in the industry are not asking them to do this. At least that is what industry research suggests. Consumers say they have not bought LTC insurance because no one has recommended they do so.
In short, somebody is missing the boat. This can change.
As insurance industry representatives help clients plan for their golden years, they need to make sure the clients understand that without LTC insurance, they could be jeopardizing the funds they are counting on to last them through retirement.
The risk is real. Today, approximately one in five people over age 65 and half of those over 85 need assistance with day-to-day activities, according to a 2001 report, “Baby Boomers Get an F in Financial Planning for Old Age,” from the American Council of Life Insurers.
Whether individuals receive care in their own homes, an assisted living facility or a nursing home, these services cost money–a lot of money. On a national average, a year in a nursing home costs over $50,000; home health care is less expensive but can easily run $12,000 a year, according to “The 2002 Guide To Long-Term Care Insurance” by the Health Insurance Association of America.
Unfortunately, many people end up paying for these services out of their own pockets, often depleting a lifetime of savings.
