Top 3 Reasons Long-Term Care Insurance Is Not A Part of A Financial Plan

1. Confusion. People still don’t know what Long-Term Care Insurance (LTC) is. Doesn’t Medicare cover long term care needs? A recent study of boomers showed that 54% of them believed that Medicare would cover LTC. It won’t.

2. Denial. People still say, “It’s not going to happen to me.” Especially if they’re 36 or even 52. But show them the actual statistics and they’ll see that the odds are that 70% of people over age 65 end up needing long term care. And 40% of LTC costs still go to cover patients aged 18-64.

3. Fear. Nobody likes to talk about getting older, but it’s a conversation you need to have. What might happen if you or a loved one required long term care. Discussions about ill health are so unsettling and that’s caused many people to avoid taking the steps to make sure they are covered.

Like any life insurance, there are pros and cons to LTC, but when you think about the costs of LTC, you also have to think, “Who’s going to be changing my father’s clothes and giving my parents a bath when they’re incapable of doing so themselves?”

80% of care in the U.S. is provided by other family members; I would prefer to love my parents but have someone else oversee their daily care.

Most things in life are predictable. But should you need extended care, well … that’s the wild card. And I’m still dazzled by the degree to which most people are confused about LTC. It’s not the most important part of your financial plan, but it is an essential component.

If you’re an average person in your 40s, if you’re not taking the time to learn, take action and make the moves on LTC, you’re making a major mistake.