Personal Finance Essentials
The Myths About Long-Term Care
Long-Term Care Insurance > The Myths About Long-Term Care
Despite the scale of the risk, most people have given it remarkably little thought.
In an ACLI survey, 50% of consumers said they had given little or no thought to long-term care costs, and only 4% said they had actually solved the problem. The reason, in most cases, comes down to four widely-held myths.
1
“It won’t happen to me.”
More than half of women and about a third of men who reach age 65 will spend time in a nursing home. Seven out of ten people age 65 and older will need some form of long-term care for an average of three years. The nursing home population is projected to double to more than five million residents over the next 20 years. By 2030, the over-85 population will be the fastest-growing segment of the U.S. population. The odds strongly favor that you – or someone you love – will need care.
2
“A family member will provide care.”
They might – but at a devastating personal cost. Family caregiving is not a free solution. The financial and emotional toll on those who provide care is substantial and well-documented.
3
“Government or health insurance will cover the expenses.”
This is the most dangerous myth of all. None of the programs most people assume will step in – health insurance, Medicare, Social Security – actually cover long-term care in any meaningful way.
4
“I’ll have enough money to pay for it myself.”
Even those with significant savings often underestimate what care actually costs over time. And spending those assets on care means they won’t be available for anything else.