“Why High Interest Rates Are Good News for Long-Term Care Insurance,” by Pete Grieve, Money “When you purchase long-term care insurance, it should offer peace of mind knowing you’re covered as you age — but all too often Americans have opened policies only to have their premiums later rise to unaffordable levels. Now, there’s finally some hope that the market has entered a period of stability, thanks in part to today’s high interest rates. Bonds are the primary investments for many long-term care insurance investment portfolios. For years, low interest rates for bonds resulted in low returns, ultimately hurting insurers’ bottom
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“The Affordability of Long-Term Care and Support Services: Findings from a KFF Survey,” by Liz Hamel and Alex Montero, Kaiser Family Foundation “Millions of older adults in the U.S., as well as some younger people with disabilities, require assistance with activities of daily living that may be provided in residential facilities like nursing homes or assisted living facilities, or in their homes or other settings by paid or unpaid caregivers. It is estimated that 5.8 million people used paid long-term services and supports (LTSS) in 2020, while another 1.9 million used LTSS in institutional settings, according to CBO estimates1. Despite
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“12 Ways Long-Term Care Risk Eats Your AUM,” by Allison Bell, ThinkAdvisor “Whether you’re trying to sell retirement planning services, stocks, mutual funds or annuities, long-term care costs hover over your book of business like a hungry, remorseless demon. Lincoln Financial found when it organized a survey of 1,003 U.S. adults last spring that just 35% of the participants with financial professionals had talked to those financial professionals about LTC planning. About 27% of those survey participants with financial professionals said the financial professionals had never even raised the issue.”   LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform: Are American consumers
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“Worried About Long-Term Care Expenses? Let’s Do Something About It.,” by Christine Benz, Morningstar “Given that just 7 million people are covered by long-term-care insurance in the United States today, and there are more than 75 million over age 60, according to the 2020 U.S. Census, that’s a lot of people who are probably either worrying a little or a lot about what long-term-care expenses might mean for their retirement plans. For those self-funders, I like the idea of creating a dedicated long-term-care bucket that is separate from the spendable portfolio. Earmarking a portion of assets for long-term care can provide valuable peace
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“What is the Average Age and Disability Level of Older People Moving Into Long-Term Care?,” by Greg Glasgow, U. of Colorado School of Medicine “After crunching the numbers, Lam found that the mean age for people entering care facilities is 84, and their entry is typically preceded by months of severe disability and escalating caretaking at home, typically by unpaid family members. The average person moving into a nursing home is already severely disabled and receiving about 27 hours a week of care for at least one month, he found. Severe disability means they have a lot of difficulty or someone
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