The Insurance Buying Guide: Losing Your Independence
By the year 2000, there will be more than 35 million people in the United States who are over age 65. And that figure is expected to nearly double by the year 2030. In addition, by the year 2000, life expectancy for both males and females is expected to exceed 80 years of age -- by 2030, it most likely will approach 90 years of age. And, by the year 2025, the number of people over age 80 is expected to double, while the age group over 90 is expected to more than triple.
As people live longer, they are exposed to health-related risks for longer periods of time. They also are more likely to require help with the activities of daily living (ADLs).
Examples of ADLs include:- walking;
- moving into and out of a bed, chair or wheelchair;
- dressing;
- going to the bathroom;
- bathing; and
- feeding.
If you are no longer able to perform some or all of these activities of daily living, you'll need what is known as custodial care. You also can get this sort of care at home, if someone comes in to help you. You can move in with friends or family to get this sort of care. Or you can move into a nursing home. Today, about 80 percent of routine senior care is provided by friends and relatives. But what if you live in a community of other seniors? Due to their own physical problems, friends and neighbors may be unable to assist with custodial care.
Depending on relatives for custodial care may not be practical, either. Today's family tends to be dispersed and very mobile. Many times, parents live in the Sun Belt and their children are scattered around the country or even the world. Thus, when you need assistance with bathing, eating, transportation, medical treatment and taking medication, your family members may not be close enough to lend a hand.
Even if they are local, your children may not have the financial resources to assist you when you get on in age. They may have to work full-time to make ends meet. Staying home to take care of a parent simply may not be a financial option.
Or perhaps you're very independent and you don't want to rely on help from friends and family. Perhaps you'd rather take care of yourself -- even if that means paying someone to come to your home and feed and dress you.
If you have to enter a nursing home to get the custodial care you need, money will be a big concern. Nursing home care can cost from $35,000 to $65,000 a year -- and prices continue to increase.
Unfortunately, if you are now 65, your risk of having to spend at least some time in a nursing home is between 35 percent and 49 percent. While most nursing home stays average 90 days or less, at age 65, your risk of spending more than a year in a nursing home is about 22 percent.
(Long-term care is not just a problem of the elderly, either. While the odds that you will need long-term care at a younger age are slim, a chronic illness or severe accident can result in catastrophic expenses for care.)
How will you pay for a long-term stay in a nursing home -- or for someone to come to your home and help you with the activities of daily living? There aren't a whole lot of choices. You can:
- use personal assets to pay for assistance;
- depend on relatives and friends for help and support;
- depend on government programs; or
- purchase LTC insurance to kick in when you need it.
