The importance of LTC in the mountain states

Over the last decade, we've slowly seen long-term care (LTC) become more than just a trendy topic in the insurance industry. Though not normally top of mind for consumers, LTC has catapulted to the forefront due to legislation and a growing need, with 70% of adults aged 65 and older requiring LTC at some point in their life.¹

People often think the solution to this growing need is purchasing a LTC insurance plan, but it's not that simple. Yes, it's true that acquiring LTC protection plays a large role, but it's not the end solution-especially for those living in the mountain states (Colorado, Wyoming, Utah, Idaho, and Montana).

In addition to the significant costs of care for everyone, there's a lot of other logistical challenges that come into play when receiving care. So, when it comes to those who need LTC, how and where to get it, and the importance of preparing for the future, our mountain region residents need to understand that they will have some unique challenges to consider regarding their LTC needs-and that's where we can help.

The need for LTC has changed, and the brokers of the region (and myself included) have the opportunity to help change the way we our fellow mountain residents view their healthcare needs, ensuring that future policyholders are protected when the time comes to use LTC services.

Understanding the demographics & LTC infrastructure in the mountain states

Across the country, we've all seen the population of individuals aged 65+ increase year over year-the mountain states are no exception to this trend. In 2008, individuals 65+ made up 11.34% of the combined mountain states population. As of 2022, that number has risen to 16.74%.²

Despite the rising elderly population, access and availability of care remains a challenge. And for individuals who live in the countryside, long drives to access LTC facilities, or for professionals in home care to reach them, can be costly. The limited resources along with the difficult of access only helps to further drive up costs. Of the LTC facilities or services available, the mountain region costs rank above the national average-most notably in Montana, where the cost of In-Home Care is $3,718 more per month than the national average.³

As of 2023, it's safe to say these increased costs are primarily linked to the region's more rural landscape where care worker shortages and general lack of funding LTC resources exacerbate the problem. So, even if brokers are able to offer LTC products, policyholders can face challenges as they still may have difficulty accessing the care they need.⁴ So, it's important to communicate to clients the importance of planning for LTC as early as they can.

The importance of LTC planning

There's an industry saying that goes, "The best time to think about LTC is before you need it." For policyholders in the mountain states, that couldn't be more true. For those working in the insurance industry, it's important to not only provide people access to quality LTC products, but to educate these rural communities on the importance of LTC planning to empower current and future policyholders to make informed decisions that will be prepare them for the future needs, no matter where they live in the region.

As mentioned above, the lack of resources and high costs restrict access to care. Ways brokers can help educate residents the importance of planning is by reinforcing the need to acquire an LTC policy earlier in life, researching the nearest LTC facilities costs and availability, and discussing the potential family burdens that can come with LTC.

For example, when it comes to premiums, the longer someone waits to get an LTC policy, most likely, the higher the premiums will become. If someone decides to wait, they could very easily end up paying more for coverage-which may also result in reduced options for coverage if they wait too long. With the costs in the mountain region already being higher than the national average, brokers need to reinforce that LTC isn't planning for a future need, the need is already present.

Additionally, it's critical to showcase to the community that LTC isn't just for the elderly. Health issues can arise unexpectedly, forcing individuals to utilize LTC much earlier than expected. In fact, 37% of individuals who use LTC are 64 years of age and younger (approx. 3.7 million Americans).⁵

Unpreparedness often leads people to turn to their families for care. While no one wants to become a burden for their family, the current reality is that 66% of U.S. home care is paid for solely by family members.⁶ Just in the state of Idaho, the value of unpaid family caregiving has reached upwards of $3 Billion annually, showcasing why residents in the mountain states need to plan for LTC now more than ever.⁷

What LTC options are available?

As if mountain state residents needed another challenge, there's also the shrinking number of options for LTC policies. Due to the costs and the demand, many standalone LTC insurers are leaving the market. As such, an increasingly common solution for consumers are hybrid products that combine life and long-term care benefits. So, despite all the obstacles in the way of LTC for residents in the mountain states, there are still products on the market the brokers can turn to in order to help mitigate the financial risks.

These products offer some advantages over standalone products. The most obvious of which is the fact that, since they combine life insurance with LTC, policyholders can likely receive a benefit even if they're among those who don't need care. Furthermore, life insurance can sometimes help encourage young people to buy the coverage early since it's a more relevant benefit for those starting or growing their families.

In the case of Trustmark, we offer three different products that can include LTC benefits: Universal Life, Universal LifeEvents®, and Trustmark Life + Care®. Not only does the LTC benefit pay 4% of the death benefit per month for care, but the benefit is also available for in home care (by a healthcare worker or family member) or at a facility for up to 25 months. You can learn more about the LTC benefit here.

When it comes to the mountain region, there is no doubt that our communities will need to prepare for a variety of LTC scenarios. But when brokers can educate residents on the risks of not obtaining available LTC policies and how to properly plan for when they need their LTC benefits-they put employees on the path to ensuring financial and physical wellbeing. Ultimately, it will lead to stronger communities and greater resilience for residents of the mountain states in the face of our ongoing challenges.

Sources:
1 Long-Term Care Statistics: A Portrait of American in Assisted Living, Nursing Homes, and Skilled Nursing Facilities. Samuels. A Place for Mom. 2023.
2 State Health Facts. Population Distribution by Age. KFF. 2024.
3 Cost of Care Survey. Genworth. 2024.
4 Accessibility of Child Care & Direct Care in Colorado. The Bel Policy Center. 2023.
5 Selected Long-Term Care Statistics. Family Caregiver Allicance. 2024.
6 4 Reasons Why Long-Term Care Planning Is Important. Elder Care Alliance. 2023.
7 Family Caregivers in Idaho Provide $3 Billion in Unpiad Care to Loved Ones. AARP. 2024.

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