Millennials are most aware about long term care insurance

Only 20% of Americans have taken steps towards financing long term care, including even researching the costs. Millennials, who have long known that Social Security may not exist by the time they retire, are the generation most likely to have taken action on long term care insurance, according to Genworth Life Insurance Company, a long term care insurer since 1974.

Of people age 65 and older, 70% will need long term care at some point. However, only 52% of baby boomers believe they will need care. Millennials and members of Generation X are more realistic; 64% of Millennials (age 34 and younger) and 65% of Generation X (age 35-50) expect they may need long term care in the future.

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Most Americans (66%) mistakenly believe government programs will cover the costs of long term care. But Medicare only pays for skilled services or rehabilitative care, not for non-skilled assistance with activities of daily living, which is the bulk of long term care services.

Here are the 2016 national average costs for long term care in the United States (costs vary by state): $225/day or $6,844/month for a semi-private room in a nursing home; $253/day or $7,698/month for a private room in a nursing home; $119/day or $3,628/month for a one-bedroom space in an assisted living facility; $20.50/hour for a health aide; $20/hour for homemaker services; $68/day in an adult day health care center.

For those who are not prepared financially to handle their care costs, the burden will fall on their families and communities. It’s important for people who are growing older to talk with their families about their possible future needs and develop a plan — including how they will pay for care if needed.

Other facts the Genworth study showed Americans were uninformed about: 52% did not know that long term care insurance can cover help in their homes; 61% did not know that long term care can be personalized and that the insurer can help them find good care providers.

Insurers say people are never too young to begin planning for long term care costs, which can be a major expense and quickly use up retirement savings. To find out about long term care insurance, see the Guide To Long Term Care

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Want to live longer? Take care of someone

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Seniors who take care of others live longer than those who do not.

This observation comes from an international research project in which scientists analyzed data from the Berlin Aging Study that followed 500 adults over the age of 69 from 1990 to 2009. About half of the subjects took care of friends, children, or grandchildren; these caregivers were still alive 10 years after their first interview in 1990.

For those who took care of non-family members, half were still alive seven years after the first interview. For those seniors who did not take care of anyone, 50 percent had died within four years of the first interview.

However, moderation in caregiving is essential. Other studies have shown that too much caregiving responsibility is stressful and can endanger one’s health.

Long term care insurance can help pay for needed care at home or in an institution. Some companies offer a cash benefit that can be used to pay a friend or family member for care. Get more information here: GuideToLongTermCare.com

 

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