Four myths that hinder long-term care planning—and how to dispel them

Key Takeaways:

• A recent Nationwide Retirement Institute survey shows widespread myths about long-term care (LTC), which can prevent clients from effectively planning for their future LTC needs.
• Clients are open to having conversations about long-term care planning but are waiting for their financial professional to bring it up.

06/16/2025 – Retirement can be a time of both opportunity and challenges, and for many Americans, their retirement may last longer than they expect. The U.S. Census Bureau projects the number of people reaching the "Century Club" (age 100) will quadruple by 2054. But too many Americans are heading into their later years with a false sense of security. 

Many Americans underestimate how long they’ll live, downplay the likelihood that they may need long-term care, and are misinformed about how to pay for it. 

The fact that we’re also living longer makes this problem more acute. A recent survey of Americans age 29+ by the Nationwide Retirement Institute^® underscores how widespread misperceptions about long-term care  are. As more of your clients confront the challenges of living longer in retirement, you can help them be financially prepared by tackling the common myths and misperceptions about long-term care and explaining how LTC insurance can provide the confidence to plan for these costs. 

Bust these common LTC myths

MYTH: Medicare covers long-term care expenses

In our survey, 58% of Americans said they plan to use Medicare to pay for long-term care costs. While Medicare may cover a fraction of a client’s LTC costs—and 12% said they have used Medicare for these types of expenses—clients shouldn’t count on Medicare to pick up the full cost of long-term care. 

Medicare covers skilled care only, not care for chronic conditions. Also, Medicare pays LTC benefits for a maximum of 100 days, with daily co-pays starting after 20 days. That’s why clients should estimate these potential costs in advance and incorporate them into their financial plans.

SOLUTION: Help clients create their own safety net to cover future long-term care costs.

MYTH: Long-term care insurance is too expensive

Cost is the top reason consumers give for not prioritizing long-term care insurance, cited by 38% of those surveyed. However, when you ask people how much they expect the monthly premium for LTC coverage to be, the answers are all over the place. Most are just guessing, usually higher than what the actual cost would be; 64% overestimated the monthly price of a LTC insurance plan presented to them. But when those we surveyed got a more accurate estimate of what the monthly cost of coverage would be, 47% said they were more likely to consider purchasing.

SOLUTION: Present different LTC insurance coverage and cost options to encourage client consideration.

MYTH: Many clients think they already have long-term care insurance

Our survey found that 22% of Americans age 29+ say they have long-term care insurance coverage, but actual ownership of LTC insurance is much lower. For instance, LIMRA estimates only 3-4% of people age 50+ have some form of coverage for LTC costs. In many cases, people mistakenly believe their existing health insurance plan or long-term disability insurance would cover these costs.

SOLUTION: Help clients better understand the gaps that LTC insurance can fill in their plans for funding health care costs in retirement.

MYTH: Clients think LTC coverage is something to purchase later in life

When asked when the right time to purchase LTC insurance is, two in five Americans (42%) believe age 60 and older is the right time. Waiting until later in life, however, may not be the best choice. While the decision on when to buy depends on different factors, earlier is often better because coverage is more accessible and costs are generally lower while we’re younger and healthier. The "sweet spot" for purchasing LTC insurance is typically between age 50-55.

SOLUTION: Start talking with clients earlier in life about the importance of long-term care planning.

View the infographic

Strong preferences for aging in place

It’s not surprising to hear that the vast majority of people surveyed would prefer to stay in their own homes if they need long-term care. In most cases, care can be provided at home, and often involves informal care with spouses and other family members serving as caregivers. It’s also common for many people to get formal care at home through paid professionals, like nurses and home health aides.

While this may be encouraging for clients to hear, many are concerned about their ability to move or relocate in retirement; 54% say the current real estate market makes it hard to move or find an ideal home for retirement, possibly because of high housing costs and mortgage rates that are higher than in recent history. Many are also concerned about potential remodeling costs, with less than half (47%) saying they expect the costs of modifying a home for aging in place (e.g., ramps, grab bars, stairlifts) to be unaffordable.

With that in mind, it’s critical to compare what services are covered across different LTC insurance policies. More flexible benefit models can help pay for informal caregivers and home modifications to help clients mitigate some of the challenges with staying where they want to be, at home.

The cost of generational caregiving

The financial burdens of LTC, if not planned for in advance, have the potential to complicate not just your clients’ financial plans but also those of their children and families as well. 

One-half of those surveyed (50%) say paying for LTC costs will diminish the inheritance they can leave to their children. But this financial burden also has an impact across generations when family members act as caregivers. Many people may not realize that providing informal care can bring significant non-reimbursed, out-of-pocket expenses. Caregivers report spending an average of nearly $400 a month on expenses for providing care to family members or friends at home, including prescriptions, transportation and home necessities.

These costs do affect the financial picture for caregivers in younger generations. Around two in five of these individuals (42%) say acting as a caregiver will likely use up the inheritance they had hoped to leave to their own children. A similar number of caregivers (41%) are afraid that the financial impact of providing care will keep them from ever retiring.

Many people don’t realize how comprehensive long-term care insurance can be. It’s not just for nursing homes—it can help cover home modifications for accessibility, compensate friends or family members who provide care, and, if the benefits go unused, it can even pay out tax-free to beneficiaries. 

LTC conversations begin with you

One of the biggest reason clients give for not discussing LTC costs with their financial professionals is a simple one—their financial professional hasn’t brought it up as a planning topic (34% of clients said so).

Clients are open to having conversations about long-term care planning with their financial professionals. In our survey, 66% say they trust their/a financial professional will tell them when the right time is to buy long-term care insurance. 

You can start LTC conversations with clients by using empathy and understanding to break down misconceptions about cost and coverage, discuss the impacts providing informal care can have on family members, and present solutions that are suitable for their specific needs.

A proactive approach to long-term care planning is more important than ever. As a financial professional, you play a key role in your clients’ lives to help them prepare for potential long-term care needs, whether for themselves, their parents or other family members.