Long-term care planning is becoming increasingly important as people live longer due to advances in medicine and technology. According to the Colorado Medical Society, 70% of individuals aged 65 and older will need some form of long-term care during their lifetime. Despite this high likelihood, many people delay making plans until it is too late.
The need for long-term care can arise unexpectedly at any age, not just in old age. Risk factors include family history, age, gender, and lifestyle choices. Women are statistically more likely to require long-term care because they tend to live longer than men. Poor lifestyle habits can also increase the risk of chronic conditions that may lead to a need for such services.
Many assume that health insurance or Medicare will cover these costs, but neither typically provides coverage for long-term care. The odds of needing long-term care are higher than many other life events: while the chance of experiencing a house fire is 0.03%, and being involved in an automobile accident is 1.6%, one out of two people (50%) will require long-term care assistance at some point.
A case study shared by the Colorado Medical Society highlights George and Ida, who purchased a long-term care insurance policy with inflation protection when they were younger and healthier. When George was diagnosed with Alzheimer’s disease in his early seventies, the couple was able to rely on their policy for support as his needs increased beyond what family members could provide.
“That decision gave them access to a greater pool of benefit dollars than if they had tried to self-fund their care,” the release states.
Costs associated with assisted living facilities have risen significantly over time; what cost $20,000 annually years ago now averages nearly $64,000 per year. These expenses are expected to continue growing at about 5% each year.
Ida found relief knowing that their planning reduced financial strain on their retirement savings and eased the burden on their adult children: “Planning for care well before you need it can have a profound impact on overall cost, your care options and your family’s freedom from worry.”
Experts recommend starting preparations early so individuals retain choice over where and how they receive care—whether through home-based services or residential facilities—and how those services will be funded. Options include paying out-of-pocket or purchasing insurance coverage designed specifically for long-term needs.
Legal preparation is also essential. Establishing clear legal instructions and appointing a financial power of attorney ensures that personal wishes regarding medical treatment, living arrangements, and finances are honored if someone becomes unable to communicate or make decisions independently.
The Colorado Medical Society has partnered with Copic Financial and BuddyIns to offer its members access to a special policy combining long-term care benefits with life insurance features. Enrollment is open on a rolling monthly basis with guaranteed approval during enrollment periods and premiums intended to remain affordable throughout life.
Members interested in learning more can enroll in this program or use online tools such as customized calculators and FAQs provided by BuddyIns.
