Long term care, in essence, is an insurance service concentrating in elderly insurance coverage that is typically not offered by such entities as Medicare or social security. If an individual can not do elementary endeavors due to external factors like injury, illness, or frailty, and daily support is required for at least 90 days, then a long term care policy is the best route of action for ensuring their wellbeing. In addition, long term care is by no means a rare requirement. Surveys show that nearly a quarter of men and women (50 % men, 75 % women) surpassing the age of 65 will need this focused type of coverage. Needless to say, it is highly in demand. Furthermore, senior citizens are not the only group of individuals seeking long term care. Almost half (40 %) of long term care claims were submitted by working people, some far from retirement (i.e. 20’s to 40’s) and some nearing retirement (late 50′, early 60’s).
Long term care is on the higher end of the spectrum when it comes to cost measured to other types of insurance coverage. Highly occupied states, such as California, carry long term care costs extending to as high as $ 75,000 per year (roughly $ 200/day) with a current escalation rate of 5.5 %. Backing of coverage typically comes from several different outlets. They include private savings and retirement accounts, family members, or from Medicaid.
Long term care, like all types of coverage, comes with a certain risk aspect that needs to be accounted for. First off is the fact that it is the largest unfunded liability in the country. The second risk has to do with the 70 million + baby boomers who are in or nearing their golden years, and the reality that less than 10 % have long term care protocols. The third is that employee care giving costs in total average above 20 billion dollars per year, and are increasing as time goes by.