Long-term care and recovery are two of the biggest issues when it comes to out-of-pocket costs for your clients. Many of your clients are Medicare age or will be soon and with that comes the realization that two of Medicare’s biggest gaps are in regards to long-term care, both in-home care and long-term care facilities, as well as short-term recovery and private nursing services. While many of your clients may think their children will take care of them or think that they will just enter “Medicaid Spend Down” and Medicaid will take care of their issues, they can potentially lose a great chunk of what they’ve spent a lot of their life to build and protect.
Long-term care and recovery insurance is just like every other insurance. It’s sold and purchased for protection, but the type of protection that LTC insurance offers differs from life insurance and medical care in that it’s designed to protect your client from financial obligation in the event they are disabled to the point they are unable to remain independent.
LTC, like Life Insurance and Annuities, can be sold as a “legacy” product. It’s designed to protect the image the client’s family has of them, retain their dignity, and hold on to their hard earned wealth and property to be able to pass it on to their survivors.
A prospective Medicare client turning 65 has nearly a 70% chance of needing LTC and supporting service before they pass away. The amount of time they will spend in LTC differs depending on gender (3.7 years for women and 2.2 years for men). The odds are not in your client’s favor at not needing LTC at some point in their remaining years.
Moreover, self-insuring is not a viable solution for the vast majority of seniors due to the prohibitive cost of LTC facilities in the United States. The median cost for a semi-private room for a nursing home in Missouri is $52,830 a year in 2012. By 2022 the costs are projected to be $73,734/yr (longtermcare.gov). These are out-of-pocket costs that your client may have to deal with once Medicare or their private insurance has paid out their limits.
Simply put, if 70% of uninsured 65 year olds will eventually need LTC for two years, they will need at least $105,660 in Missouri to keep from possibly losing all they’ve worked so hard to build and protect.
LTC and Recovery insurance is a market that is growing, especially amongst the T65 market and the need is only growing year-over-year as the costs go up.
*We do not keep product forms for all states. If you need a product that is not listed on the website, please reach out to us at 1-800-689-2800 for assistance.