The Baby Boomer’s for years had made up the largest segment of the United States population, however with many older Boomers dying there is a new front runner.
| The Greatest Generation | 1.7 million | born prior to 1928 | 93+ today |
| The Silent Generation | 20.87 million | 1928-1945 | 75-92 today |
| The Baby Boomers | 69.56 million | 1946-1964 | 56-74 today |
| Generation X | 65,17 million | 1965-1980 | 40-55 today |
| The Millennial | 72.12 million | 1981-1996 | 24-54 today |
| Generation Z | 67.17 million | 1997-2012 | 8-23 today |
As of 2019 the average life expectancy for men vs women in the US is 76 and 81 years old, however those numbers increase to 79 and 83 by the year 2030.
What does this all mean? Many people save for retirement but do not consider that we all continue to grow older and a good portion of that nest egg will likely be used to pay for long term care. One in seven older adults currently require assistance with their activities of daily living through in home care providers or in a long-term care facility. According to Genworth, who once was owned by General Electric but sold in 2006, the average cost for long term care in an assisted living community is $4000.00 nationwide; you can expect that number to increase by at least $2000.00 per month for specialized Dementia Care and an additional $4000.00 per month for care in a nursing home.
According to Forbes Magazine April 2019 issue, Genworth, who had been the largest seller of LTCI policies has suspended writing individual, stand-alone policies. The insurance industry did not expect to payout millions of dollars in LTCI benefits and thus were losing money.
Instead they expected LTCI policies to be like life insurance, people would eventually let the policy lapse because they could no longer afford the premiums. The federal government put safeguards in place a decade ago to ensure that policy holders did not lose all their benefits should they not be able to continue paying the premiums which has resulted in more companies like Genworth to discontinue writing the policies. Many insurance providers are offering riders to whole and universal life policies and annuities to help cover long term care costs or hybrid policies.
If you are considering purchasing long term care insurance the best time to purchase is in your 50’s, I call it the “sweet-spot.” You are still healthy and have not been diagnosed with any serious health problem. At every decade in age increase, the cost of premiums jumps significantly, do not wait until your 60 to purchase a policy that you could have purchased at 59!
There are certain diseases, disorders, or health issues that once are medically documented deem you uninsurable. If your health or family history is not the best, you may want to consider purchasing a policy in your 40’s, the premiums will be less expensive, and you will have peace of mind knowing you are covered.
My suggestion is to forgo the inflation protection as it drives up the cost of your premiums by an incredible amount! Ideally you want to purchase a base policy in your 50’s that has the option to increase your “daily rate,” at certain intervals or ages.
For example, I purchased my policy at 47 years old, 60 days prior to turning 50,55,60 and 65 I can increase my “daily rate,” benefit by an additional $25.00 per day. By the time I am 65 I went from a benefit of $100.00 per day to $200.00 per day and was able to spread out the cost of increased premiums over 15 years.
Here is a list of five highly rated companies offering long term care insurance.
- New York Life: Best Overall.
- Mutual of Omaha: Best Discounts.
- Lincoln Financial Group: Best for “no waiting period.”
- Brighthouse Financial: Best for easy benefits payout.
- Pacific Life: Best for flexible options.
