News Details

CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- The costs of long term care vary across the country from a low of $19,296 per year for in-home care in Louisiana to a high of $177,634 for full-service nursing home care in Alaska, according to Unum's (NYSE: UNM) Long Term Care Cost Survey 2008. Understanding these costs is a critical part of financial planning for the long term.

"We're all watching the stock market scramble our nest eggs," said John Noble, director of long term care products for Unum. "But this underscores the important role that employee benefits can play in protecting the financial stability of workers and their families. As we evaluate our financial plans, long term care coverage becomes a vital tool in helping to manage those expenses over time."

An estimated 60 percent of Americans will need some kind of assisted care¹, but nearly as many Americans doubt they have enough money to pay for it.² In 2007 Americans spent $206 billion³ on long term care services and spending is expected to increase as society continues to age.

To help employers and their employees make the most informed decisions about long term care coverage, Unum'sLong Term Care Cost Survey 2008 analyzes the cost of care available across the country, from full-service nursing home prices to home-based care. The Long Term Care Cost Survey 2008 shows:

    --  Home care: National average - $24,375. Lowest, Louisiana -
        $19,296. Highest, Alaska - $30,849
    --  Assisted-living facility: National average - $38,529. Lowest,
        Missouri - $25,900. Highest, Maine - $65,700.
    --  Nursing home (semi-private): National average - $66,367.
        Lowest, Texas - $37,960. Highest, Alaska - $161,450.
    --  Nursing home (private facility): National average - $74,368.
        Lowest, Louisiana - $40,241. Highest, Alaska - $177,634.

"Prices for long term care services vary significantly by geographical region," Noble said. "Because many people plan to move upon retirement, it's helpful to know what costs are in other areas so the correct amount of long term care insurance is purchased."

In addition to the annual review of long term care costs, Unum provides an annual review of sales and claims trends each fall in recognition of Long Term Care Awareness Month in November. Unum reported earlier this month that nursing home only policies are diminishing - the company sold zero nursing-home-only policies in 2007 - and home care is the preferred type of care received by Unum customers. Last year 66 percent of Unum group long term care claimants received care at home while 13 percent received care in a nursing home.

Unum's report on long term care costs is part of its annual Landscape of Long Term Care in recognition of Long Term Care Awareness Month in November. Additional information on these trends is available at www.unum.com/newsroom/NewsReleases/.

Unum holds 76 percent of the group long term care market and ranks No. 1 in the industry in terms of inforce cases and insured individuals. In 2007, Unum covered 653,038 people under its long term care policies.

Unless referenced otherwise, the statistics included in this news release are based on Unum internal data as of 2007.

About Unum

Unum (www.unum.com) is one of the leading providers of employee benefits products and services in the United States and the United Kingdom. Through its subsidiaries, Unum provided more than $6 billion in total benefits to customers in 2007.

¹The National Association of Insurance Commissioners (NAIC), June 27, 2006.

²Employee Benefit Research Institute, and Mathew Greenwald & Associates Inc., "Retirement Confidence Survey," April 2008.

³ National Spending for Long Term Care, Fact Sheet, Georgetown University Long Term Care Financing Project, February 2007.

    Source: Unum