Sizing up the statistics on LTC

What can the representative do? Studies show that a 65-year-old today has a 70 percent chance of needing long term care services at some point during his or her lifetime.

Care costs & length

• Home health aide services (non-Medicare certified): $19/hour
• Home health aide services (Medicare certified) $38/hour
• Assisted living facility (private one-bedroom) monthly average rate: $3,008
• Nursing home (semi-private room): $187/day; (private room): $209/day
• About 44 percent of people reaching age 65 are expected to enter a nursing home at least once in their lifetime. Of those who do enter a nursing home, about 53 percent will stay for one year or more.

Claims

• 95% of claims lasted less than five years.
• $3.5 billion in LTC insurance claims was paid in 2007.
• 180,000 individuals received LTC insurance benefits in 2007.
• A $1 million claim benefit for a single individual was recently surpassed.
• Age of claimant for new claims opened in 2007: 32.3% ages 70 to 79; 55.2% age 80+.
• Percentages of claims paid: 43% for home care; 30.5% for assisted living; 25.7% for nursing homes.

Targeting baby boomers

• Probability of developing a disability in remaining lifetime (ages 60 to 64):male = 44%: female = 73%.
• Ages when people apply: Under 44 =7%; 45-54 = 26%;55-64 = 50%; 65-74 = 15%;75 or older = 2%.

LTC sales general information

• 8 million people are protected with LTC insurance.
• 400,000 new Americans obtained LTC insurance coverage in 2007.
• Average age of buyer = 57
• Today’s 65 year old can expect to reach 83 years of age.