Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years. Women need care longer (3.7 years) than men (2.2 years) One-third of today’s 65 year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years.

What if I never use my long term care insurance?

Pro: You get something for your money even if you never use the long-term care portion of the policy. If you don’t use it for long-term care, or don’t use all of it, your beneficiary gets a life insurance payout when you die. Con: It’s an option only if you have a large sum of money to spend.

How are people buying long term care insurance?

What’s more, insurers usually cap what they will pay out. Instead of buying traditional long-term insurance, more Americans are buying other insurance products for long-term care. Some like Julia Dobson, 68, are getting life insurance that allows them to accelerate the death benefit if care is needed.

How many people over age 65 need long term care?

I am referring to the statistic that “70 percent of people over age 65 need some long-term care”. This number, based on a government study conducted years ago, may be accurate but the definition for “long-term care” is quite encompassing and not relevant to a discussion regarding long term care insurance utilization.

When did long term care insurance become popular?

When it first became popular in the late 1980s, long-term care insurance was cheaper and usually more generous than the policies being sold today. It turned out that insurers had underpriced coverage.

How is the value of long term care insurance calculated?

Based on 2019 American Association for Long-Term Care Insurance annual Price Index survey of leading LTC insurers. Age bands released individually during Jan and Feb. For Initial pool of benefits equal to $164,000 (each at age 55). Value of benefits when policyholder reaches age 85 equals $386,500 each. Calculated: January 2019