Long-term care planning is becoming increasingly important as statistics show that 70% of people aged 65 and older will need some form of long-term care. Despite this high probability, many individuals delay making arrangements until it is too late. Health insurance and Medicare do not cover long-term care costs, leaving many unprepared for the financial burden.
People often underestimate their risk of needing such services compared to other life events. For example, the chance of experiencing a house fire is about 0.03%, while being involved in an automobile accident stands at 1.6%. In contrast, there is a one in two chance—50%—that someone will require long-term care assistance during their lifetime.
Certain factors increase the likelihood of needing long-term care, including family history, age, gender, and lifestyle choices. Women are more likely than men to require these services due to longer life expectancy. Additionally, unhealthy habits can lead to chronic conditions that raise the risk.
A case study illustrates the benefits of early planning: George and Ida purchased a long-term care insurance policy with inflation protection while they were still healthy. When George was later diagnosed with Alzheimer’s disease, their coverage eased the financial strain on their family as his condition advanced and required professional help. “When George was first diagnosed, Ida and family members were prepared to coordinate their schedules to help him. As his condition progressed, Ida found it increasingly difficult to manage her husband’s needs — even with the help of their adult children. The decision years ago to purchase long-term care insurance provided enormous relief once it became clear that George needed the help of home health aides.” According to estimates at the time they began planning, assisted living facility costs averaged $20,000 annually; now those costs have risen close to $64,000 per year and continue to grow by approximately 5% each year.
Experts recommend starting a long-term care plan early so individuals can choose how and where they receive care and manage expenses effectively. Options include home-based services or moving into facilities offering varying levels of support from independent living through skilled nursing.
It is also essential to establish legal instructions and appoint a financial power of attorney as part of any comprehensive plan. These steps ensure medical treatment preferences and financial matters are handled according to one’s wishes if one becomes unable to communicate or make decisions independently.
The Colorado Medical Society has partnered with Copic Financial and BuddyIns to offer its members access to a special long-term care policy featuring a life insurance benefit. Enrollment is available on an ongoing monthly basis with guaranteed approval during specific periods and affordable premiums. Members can retain this policy for life and use it anywhere in the United States.
For those interested in learning more or enrolling in this program, resources such as customized calculators and FAQs are available through the Colorado Medical Society’s partnership program.
