Important Long Term Care Statistics to Consider

Hello Friends,

Recently, I was provided an excellent report produced by Christine Benz of Morningstar on long term care statistics that I felt was important to share. If you want to cut to the chase, the link to the report is directly below. You may have to wait out a few ads, but it's how they earn their pay, and I'm totally good with it. Thank you Morningstar.

Morningstar Long Term Care Report

Similar to the report's author, the topic of long term care has hit close to home for me over the years, both personally and professionally. Within both sides of my world, I have seen the challenges that adults in need of care later in life often face. Whether it is the proper care, the timing, and type of care, and especially the cost of care, it can be a stressful situation for the individual in need and also family members who often serve as both an emotional and financial backstop. I have seen first-hand close family members try to cope with skyrocketing long term care insurance premiums because their insurance companies underestimated the rising costs of care. I've also watched somewhat helplessly as good folks had little choice but to erode their family's financial cushion to support a debilitating issue that often is terminal in nature but can take years to play out. 

As a financial planner, more and more, I've made it a regular part of the conversation with clients to contemplate what their end of life situation might look like and the potential effects that care needs may have on their plan outcomes and also their family. If the potential exists for self-insuring (paying out of pocket) for care, it is worth having a planning scenario where “just in case” funds are set aside. Alternatively, if it makes more sense to utilize traditional long term care insurance available cover some of the costs, that too is worth a closer look. 

Planning for potential late life-stage issues is never the most enjoyable of conversations we all like to have. I might suggest that it has been one of the most challenging for clients and families to process from a cost/benefit analysis, especially as insurance premiums hikes have danced on the edge of the absurd in recent times. Yet, it would be wrong not to talk about it, first amongst your family, your financial planner, and other trusted professionals.

At Aberle Investment Management, we are not in the business of selling insurance. We can, however, be strong advocates for our clients during the process. We utilize the highest quality of planning tools to help our clients forecast potential costs, and also have a good number of trusted professionals that we lean on for our clients' insurance needs when they make sense. Should you wish to understand your options better, we welcome connecting.

Thanks for reading,

Brian Aberle, CFP

President, Aberle Investment Management