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Generally, long-term care is the care people need when they can’t perform the tasks of ordinary living independently. It isn’t a subject that most of us care to dwell on. However, the failure to discuss or plan for the high cost of long-term care is causing American families to be unprepared to meet the high costs of long-term care. This section addresses what long-term care is and where it is provided, as well as the costs of long-term care and who pays for it.

 

National Spending on Long-Term Care

The longer we live, the more likely it is that we will need someone to help take care of us.1

  • At age 55, One out of every Ten people will need some form of Long-Term Care.
  • At age 65, Four out of every Ten people will need some form of Long-Term Care.
  • At age 75, Six out of every Ten people will need some form of Long-Term Care.
  • Fifty Percent of all couples are impoverished within one year of One Spouse entering a Nursing Home.
  • For couples the risk is overwhelming: 7 out of 10 couples age 65 or older will have one or both individuals enter a nursing home some time before they die.
  • In 1990, approximately $82 Billion was spent on Nursing Home Care - up from $20 Billion in 1980.
  • A Harvard university study states that 46 percent of elderly persons entering a Nursing Home are impoverished within THREE months, and 75 percent are impoverished within One Year.
  • There is a one in 80 chance of ever using your homeowners insurance, and a one in 40 chance of using your automobile insurance, but about a 60 percent chance that you're going to be in a nursing home after age 65.
    -National Underwriter - May 10,1999

1Source: U.S. Department of Health & Human Services