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John Hancock Announces Results of National Long-Term Care Cost of Care Study
Overall LTC Costs Increasing with Inflation
By: PR Newswire
Nov. 20, 2008 10:00 AM
Including information from more than 11,000 care providers nationwide, the
study of national care costs conducted by CareScout, based in
A comparison of the 2008 national averages to those of a similar study conducted by Harris, Rothenberg International for John Hancock in 2002, indicates that the increases in costs over the past six years appear to be tracking inflation, as measured by the Consumer Price Index (CPI) during the same time period. According to the study, the average annual increase in the cost of long-term care is trending in line with the 3.3 percent average annual increase in the CPI during the same time period as noted below.
-- The 2008 average cost of a private nursing home room (
-- The 2008 average cost of a semi-private nursing home room (
-- The 2008 average cost for a month in an assisted living facility
-- The 2008 average cost for a home health aide (
"In the 1990s the costs of care, particularly nursing home care, rose at a
far faster pace, but with the expansion of other viable long-term care
settings, such as home and community-based care, annual increases in the cost
of care today appear to be stabilizing, falling in line with the general
increase in inflation," said
During times of financial volatility, products that protect assets, such as long-term care insurance, can be extremely valuable explained Harrison. Owning a long-term care policy during a downturn protects people from having to sell investments, potentially at a loss, to pay for these services, she said.
"Our sales force is finding during this economy that many consumers who thought they could self-insure the risk of LTC are re-evaluating that decision," said Harrison.
For those consumers, Harrison recommended the following:
-- Consider LTC insurance when you are young and healthy, perhaps in your mid 40s or 50s, because the annual cost of LTC insurance is lower the younger and healthier you are.
-- Ask your financial advisor about LTC insurance, and/or check to see if your employer offers this coverage as premiums offered through group LTC insurance plans can be very affordable.
-- Buy the basic amount of coverage that is needed, instead of stretching for a "Cadillac" policy. For many people, a total benefit pool that will last 3 to 5 years with a daily benefit that reflects the current cost of care in their area and CPI-linked compound inflation option would provide strong, affordable coverage that will grow with time.
About the 2008 John Hancock Long-Term Care Cost of Care Survey
The John Hancock Cost of Care Survey was conducted by CareScout, based in
About John Hancock Long-Term Care Insurance
Having entered the retail LTC insurance market in 1987, John Hancock is one of the largest carriers of individual coverage in the country.(4) John Hancock began selling group LTC insurance in 1988 and today is the largest provider of employer-sponsored group LTC insurance in the U.S.(5)
About John Hancock Financial and Manulife Financial Corporation
John Hancock Financial is a unit of Manulife Financial Corporation (the
Company), a leading Canadian-based financial services group serving millions
of customers in 19 countries and territories worldwide. Operating as Manulife
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '0945' on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.
The John Hancock unit, through its insurance companies, comprises one of
the largest life insurers in
Long Term Care Insurance is underwritten by John Hancock Life Insurance
(1) Based on the John Hancock Cost of Care Survey averages and the 30-year average annual increase in inflation as measured by the CPI of 4.2% (2) As of September 30, 2008, according to internal financial records (3) As of September 30, 2008, according to internal financial records (4) LIMRA International, U.S. Individual Long-Term Care Insurance Sales Survey, Fourth Quarter YTD 2007 (5) LIMRA International, U.S. Group Long-Term Care Insurance Sales Survey, Fourth Quarter YTD 2007
SOURCE John Hancock Long-Term Care
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