Prevention Is the Best Long-term Care Planning Strategy

A home care aide with a woman who needs care. Via DAMS.

"An ounce of prevention is worth a pound of cure" is an adage that rings true today as the core principle of effective long-term care planning.

However, many professionals are unaware of the critical, mutually beneficial connection between successful long-term care planning and client wellness.

Aging in place is the new American dream, with more than three-quarters of adults 50 and older telling AARP they want to stay in their homes as they age.

This dream can become a nightmare for millions with perilously inadequate long-term care plans and preventative strategies.

The insurance industry can help.

As the Graying Globe continues — adults age 65-plus expected to reach over 80 million by 2040 — the onus is on us to empower people to effectively age on their own terms.

Advocating preventative health presents a unique opportunity to help heighten clients' long-term care readiness while bolstering business profitability.

Bridging the Preventative Care Awareness Gap

Bridging the gap between awareness and adapting to a healthy lifestyle is crucial for the physical and financial health of your clients.

Preventative measures play an integral role in protecting and promoting health by reducing the risk of diseases, disabilities, and death, yet only 5% of adults 65-plus received these recommended services in 2020.

There is a high cost to low prevention adherence.

An overwhelming 90% of the nation's $4.5 trillion in annual health care expenditures are for people with chronic and mental health conditions, and many of those conditions are largely preventable.

The biggest killers are heart disease and stroke, costing one in three deaths and $254 billion to our health care system every year.

Diabetes afflicts more than 38 million Americans and another 98 million have prediabetes, which can lead to serious complications, including heart disease, kidney failure and blindness.

In 2022, diabetes inflicted a combined $413 billion in medical costs and lost job productivity.

Obesity affects 42% of adults, putting them at risk of chronic illnesses such as type 2 diabetes, heart disease, and some cancers, costing the health care system nearly $173 billion a year.

The surging cost of long-term care services can also be a powerful motivator.

According to Genworth's Cost of Care Survey 2023, assisted living facility rates have reached a national median cost of $64,200 per year.

The annual median cost of a home health aide is $75,500, and a semi-private room in a skilled nursing facility is $104,000.

Small Steps, Big Mutual Benefit

Championing preventative health empowers professionals to align their financial interests with client well-being, creating a win-win situation for everyone.

The insurtech industry is developing solutions designed to drive this common objective of helping clients live longer, healthier lives.

By using data analytics and predictive modeling, insurance carriers can reach out to these individuals, offering assistance, guidance and resources to address their needs before a crisis occurs.

These programs offer policyholders access to targeted, personalized health and wellness services like fitness programs, nutrition counseling, mental health support and preventive screenings.

One example is Assured Allies' own NeverStop, a wellness rewards program that's built into an insurance policy.

By using wellness programs to promote healthier lifestyles and early intervention, insurers can reduce the chances of claims arising from preventable health issues while improving the overall customer experience, building stronger and deeper connections.

Small interventions can make a huge impact on health and well-being.

Falls are the leading cause of fatal and nonfatal injuries for people 65-plus, with one out of four falling each year.

Simply installing a grab bar in a bathtub can decrease fall hazards by 76%.

And, treating hearing loss may lower the risk of dementia, with hearing aids reducing the rate of cognitive decline in older adults at high risk by almost 50% over a three-year period.

Promoting the Power of Prevention

Clients depend on trusted advisors to educate them about long-term planning strategies.

Initiating a conversation isn't easy, but it's incumbent on advisors to raise awareness and lead consumers to where they want to be: enjoying the healthy, active retirement of their dreams. We want to work with advisors to help them make that happen.

Credit: Kacso/iStock

Larry Nisenson is chief growth officer at Assured Allies, an aging tech firm. The firm's NeverStop team runs wellness incentive programs for insurers' older insureds.