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Changing demographics, shrinking stand-alone long-term care insurance options, and new legislation have all culminated in what some are calling “the long-term care crisis.” Fortunately, we offer long-term care benefits combined with life insurance, as well as traditional group long-term care through proven solutions for employers and employees.
Changing Demographics and the Need
By 2030, there will be more people over age 65 than under 18 (The Caring Company. Harvard Business School. (2018).) 70% of those over 65 will need long-term care (Genworth Cost of Care Survey. (2020).)
The Cost of Care
The median annual cost for a home health aid is $61,776, with even higher costs for nursing home care (Genworth Cost of Care Survey. (2020).)
Shrinking Stand-alone LTC Options
While there were more than 100 companies selling LTC insurance at the turn of the 21st century, today fewer than a dozen sell a meaningful number of policies (Designing Universal Family Care. National Academy of Social Insurance. (2019).)
Hybrid long-term care benefits combined with life insurance:
100% of policyholders receive a benefit, either from life insurance or long-term care
Typically, more affordable level premiums that don’t increase due to age
Portable coverage – employees can take the same benefits with them wherever they go
Stand-alone long-term care insurance:
• Only pays if long-term care is needed
• Typically higher cost and subject to premium increases
• May require medical underwriting
Washington state recently rolled out new legislation to help address the challenge of long-term care. Employees would pay a 0.58% payroll tax unless they could provide proof of qualifying long-term care coverage. The results?