LTC Insurance Needs Prove Important

A new report from the American Association for Long-Term Care Insurance notes that more women obtain privately paid for care at home for lingering health issues with a larger number receiving this care at older stages than men.

Close to 60 percent of individuals obtaining care were women, with more than 80 percent age 75 or older, according to the study.

According to the executive director of the AALTCI, the majority of studies include home care services paid for by Medicare or Medicaid which do not reflect the usage for the large majority of individuals who pay privately or have long-term care insurance protection. The large majority of both male and female home care recipients were beyond the age of 71 and many received care for three days a week or less.

The study noted that nearly 89 percent of users were women age 71 or older compared to 81.1 percent who were men. The study reports that when it comes to number of service days per week, two-thirds (66 percent) of women utilized private in home care for three days a week or less. Just below half (49 percent) of men obtained care for three days or less, while the remainder paid for four or more days.

As the study notes, both male and females seem to pay for approximately the same number of hours of care per day.

One fourth of women (24 percent) obtained only one hour of daily care, while three-fourths (76 percent) obtained care for seven hours or less. That compared to 73 percent of men.

AALTCI's director notes that the average cost today is approximately $20 an hour, with someone requiring care three days a week for six hours a day can expect it at a cost of between $20,000 and $25,000 annually. This explains why more individuals acquire long-term care insurance with a home care benefit.

The number of days care was needed varied greatly by age, with the study comparing care usage among men and women age 64 with those age 82. AALTCI noted that individuals do require long-term care services at younger ages typically due to accidents or illnesses.

Close to 7.6 million individuals at this time receive home care due to an acute illness, long-term health condition, permanent disability or terminal illness, according to the National Association for Home Care & Hospice. Normal expenditures for home health care are $60 billion.

The bottom line is to make sure you have long-term care insurance in the event you could find yourself in this situation.