According to the most recent data available from the CDC, the average life expectancy for women in the US is 80.2 years while the average for men is 74.8 years. Since women live longer than men, they tend to be more prone to chronic health issues and disabilities that require long-term custodial care.
What Is Long-Term Custodial Care?
Long-term custodial care is the assistance you need when you’re unable to perform day-to-day activities like dressing, bathing, and using the bathroom. This type of non-medical care is usually provided in assisted living facilities and nursing homes, or by in-home health aides. Since neither FEHB nor Medicare covers non-medical custodial care in a facility or at home, the cost becomes an out-of-pocket expense for those who do not have Long-Term Care (LTC) insurance.
“Over 70% of nursing home residents are women and their average age upon admission is 80.”
Statistics Indicate Women Need Long Term-Care More Than Men
Since married women tend to outlive their husbands, nearly 50% of women aged 75 or older live alone without anyone in the household to help them with day-to-day activities. As a result, women are far more likely to need custodial, long-term care in a facility. And when you consider the following stats, LTC insurance is a must-have for women in retirement:
- A woman who reaches age 65 can expect to live an average of 20 more years; those who reach age 75 can expect to live an additional 13 years.
- More than two-thirds of people in the US age 85 or older are women and eight out of 10 centenarians in the US are women.
- Nearly 70% of women age 75 or older are widowed, divorced, or never married.
- Over 70% of nursing home residents are women and their average age upon admission is 80.
- Over 75% of residents in assisted living communities are women and their average age upon admission is 85.7.
Age 55 Is The Sweet Spot For Purchasing LTC Insurance
An article published on Yahoo News indicates that the average cost for a LTC policy with an initial value of $165,000 (and 2% inflation growth) is considerably higher at age 65 than at age 55. And since women live longer than men, LTC insurance premiums are higher.
Then again, many insurance carriers offer shared care riders for couples and other add-ons that can help make LTC insurance more affordable. Without it, you or your spouse may end up draining your Thrift Savings Plan (TSP) to pay for long-term care out of pocket.
Connect with an FRC® trained advisor to learn more.
Sources:
https://www.aaltci.org/long-term-care-insurance/learning-center/for-women.php
https://www.ioaging.org/aging-in-america
https://www.cbsnews.com/news/how-shared-long-term-care-insurance-works-for-couples
