Coverage for Long-Term Care Seen as Inadequate and Confusing

An insurance industry survey has found that while 18% of adults say they have long-term care insurance, industry data shows that barely 3% of Americans have purchased such insurance. About half of those who mistakenly thought they had long-term care coverage were confusing this with their long-term disability insurance. And close to a third actually confused it with their health insurance. Neither disability nor health insurance covers long-term care. Fewer than 1 in 5 adults say they have discussed long-term care planning with a financial professional, even though 51% said it is important for such discussion to happen. This overall situation presents a risk that significant numbers of people will discover they do not have long-term care coverage when they need it. The survey also found that half of respondents worry about becoming a burden on their family as they age, and a quarter of respondents believe paying for long-term care will diminish their children’s inheritance. A survey spokesman said, “Too many Americans are missing crucial planning steps to make sure they’re set up for success as they age. We recommend talking to a financial professional to build a plan.”