With more Americans living longer lives—membership in the “Century Club” (age 100 and up) is expected to quadruple by 20541—more people will also face the necessity and costs of long-term care (LTC).
Long-term care insurance can help clients plan for these costs and protect their wealth. According to research by the Nationwide Retirement Institute® and The American College of Financial Services, one in three clients (32%) believe LTC insurance would be one of the most helpful resources for preparing to live to 100. Yet, only 1 in 10 actually report owning a LTC insurance policy.
Results from a recent long-term care survey by the Nationwide Retirement Institute show widespread myths about paying for and receiving long-term care. That can prevent clients from effectively planning for LTC needs and expenses. Financial professionals can change this perception by busting the myths with facts about how to afford and access long-term care services.
According to LIMRA, just 3-4% of people over age 50 own some form of insurance to cover long-term care expenses,2 presenting an opportunity for financial professionals to discuss coverage options with clients.
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 after 20 days.