How LTC Insurance Supports Family Caregivers & Protects Assets

November brings dual awareness to two essential causes: Long-Term Care Insurance (LTCi) Awareness Month and National Family Caregivers Month. These two observances are closely connected, bearing a spotlight on both the importance of planning for future care and recognizing the invaluable contributions of family caregivers.

Understanding the Impact of Long-Term Care on Family Caregivers

U.S. family caregivers provide over 80% of long-term care support to elders, shouldering the demands of care with love and dedication. Yet, caregiving for an aging family member can become overwhelming. Many family caregivers balance their responsibilities with full-time jobs, personal health issues, and other family obligations. This month, as we celebrate National Family Caregivers Month , let us all recognize their sacrifices while exploring ways to support and ease their burdens.

Long-term care insurance can play a pivotal role here, offering much-needed support to caregivers as well as the individuals they care for.

LTCi: A Financial Resource for Families

For both policyholders and their family members, LTC insurance is a financial resource that can reduce the challenges of aging and caregiving. Here’s how it benefits each group:

Financial Relief for Families: Without LTC insurance, family caregivers may feel compelled to cover expenses out of pocket, which can lead to financial strain. LTC insurance helps fund professional care, alleviating family members from the need to pay for or provide that care themselves.

LTCi Protects Hard-Earned Income and Assets: It’s no surprise that LTCi services are expensive. According to Genworth’s Cost of Care Survey , in 2023 the median cost to live in an assisted living facility is $64,200 per year. Genworth estimates the median cost will jump to $106,574 in about 20 years.

This begs the question: Do you have income and assets set aside to pay for care in the future? When planning for retirement, don’t forget to factor in Long-Term Care costs. Also, LTCi protects policyholders from the financial burden of a Long-Term Care event, a situation in which someone needs help with daily living activities or has cognitive impairment. The five major health events that require Long-Term Care are dementia, stroke, heart attack, diabetes, and falls resulting in a hip or arm fracture.

CLICK HERE to see a state-specific breakdown of long-term health care costs from LTC News .

Access to Professional Care: LTC insurance enables families to access a wider range of care services, from in-home care to assisted living or skilled nursing facilities. This allows loved ones to receive the specific level of care they need from trained professionals, easing the physical and emotional load on family members.

Time and Energy to Focus on Relationships: Caregiving often reshapes the relationship between family members, with time spent assisting with daily tasks rather than enjoying quality time together. With LTC insurance covering essential services, caregivers can focus on spending more meaningful time with their loved ones, reducing caregiver burnout and preserving family bonds.

Balancing Benefits: Senior LTCi Policyholders and Family Caregivers

LTC insurance benefits both policyholders and their loved ones in profound ways:

1. Policyholders Gain Independence and Dignity: For the aging adult, having LTC insurance in place means maintaining their independence and choice over the type of care they receive. Whether they prefer to age at home with assistance or choose a care facility, LTC insurance supports their wishes and ensures their comfort.
2. Loved Ones Experience Reduced Stress and Worry: Family caregivers often feel a tremendous responsibility to ensure their loved one is safe and cared for. Knowing that a plan is in place for quality, professional care can reduce the stress and worry associated with caregiving, allowing family members to step back and feel confident that their loved one is well cared for.

Planning for Long-Term Care – A Gift to Both Aging Loved Ones and Family Caregivers

It’s important to consider long-term care insurance as early as possible, ideally in one’s 50s or early 60s. At this stage, premiums are more affordable, and applicants are more likely to qualify for coverage. Having a plan in place can provide lasting benefits as individuals age and ease the caregiving burden for family members.

Supporting Family Caregivers

During National Family Caregivers Month, we encourage families to recognize and support the caregivers in their lives. LTC insurance is one of many ways to support caregivers, as it can relieve some of the weight they carry. By planning for long-term care, we offer family members a sense of security and ensure that their loved one receives the best possible care.