TRANSCRIPT:
Most people plan for retirement, but few prepare for long-term care. In this video, we explore when individuals typically require long-term care services and how to plan effectively. Discover the differences between standalone and hybrid long-term care insurance policies, the average age of claim initiation, and the types of services most commonly used. Gain insights to make informed decisions about your future healthcare needs. Hi, I’m Hunter Brockway, founder of Boca Retirement Strategies. Here to guide you to a successful, stress-free retirement, while spending more and avoiding being killed in taxes.
Retirement is a time many look forward to, a reward for decades of hard work. But admits the dreams of travel and relaxation, there’s a crucial question: When will you need long-term care? Understanding when long-term care is typically needed can help in planning effectively. According to the American Association for Long-Term Care Insurance, 79% of individuals with hybrid life long-term care coverage filed claims by age 90, while 88% with standalone policies did the same. Notably, 38% of standalone policyholders initiated claims by age 79, compared to 22% with hybrid policies. For standalone policies, the most common age range for initiating claims is between 80 and 84, with 27% of insureds doing so. Hybrid policyholders most frequently claim between ages 85 and 89, possibly to preserve the life insurance benefits inherent in these plans. When claims are made, the services utilized vary. Home health aides are the most common, accounting for 53% of claims. Assisted living care facilities followed at 29%, with nursing home care at 27%, and skilled nursing at home at 7%.
These statistics highlight the importance of planning for various types of care. Gender also plays a role in long-term care needs. Data indicates that women are more likely to claim benefits, comprising 59% of the claims. This disparity underscores the need for personalized planning based on individual circumstances. Given these insights, it’s clear that early and informed planning is essential. Considering factors like type of policy, benefit levels, and timing can make a significant difference in ensuring financial security and peace of mind in your later years. Long-term care is a journey best navigated with foresight. By understanding when and how care is typically needed, you can make choices today that will benefit you tomorrow. I’m Hunter Brockway, founder of Boca Retirement Strategies. If you have any financial questions, you can send them into contact@bocaretirement.com.
Before you go, if you’re looking for a free tax-smart retirement plan tailored to your unique specific situation, you can head over to our website at bocaretirement.com. Enter your information in the pop-up, and we’ll build you a plan tailored to your unique specific situations at no cost or obligation. If for some reason that pop-up doesn’t show for you, or if you click out of it, don’t worry, just send us an email at contact@bocaretirement.com. Again, that’s no cost, no obligation. We’ll put together a simplified plan for you to help you take the next steps towards a successful, stress-free retirement with more money and fewer taxes. See you over there. Bye.