Did you know that 70% of people over 65 will require some care at some point in their lives? Nearly 44% of early and late Baby Boomers and Gen Xers are expected to fall short of meeting their basic financial needs in retirement – that is including their nursing home or home health needs. Based on these statistics it appears that a very large portion of us are entirely unprepared for retirement. Long term care insurance can help ease the financial and emotional burden on you and your loved ones.

Why is it that so many of us do not purchase long term care insurance? Let’s dispel the myths!


My life savings will cover it.
Once long term care is needed, the average American loses their entire life savings within nine months. The average American between the ages of 55 and 64 will have accumulated about $104, 000 in retirement savings. $417,900 is the approximate average cost for 5 years in a skilled nursing home faculty. Many families will struggle with this often unforeseen expense.


I’m too young.
You are never too young. This isn’t something you should look at in your sixties – for most people the best time to buy may be in their mid-to-late 50s. Applying at a younger age can provide you the ability to save money and have the best chance of getting approved for coverage. By waiting you risk paying higher premiums, needing to buy more coverage and paying future rates.


It will never happen to me.
Young or old, LTC insurance picks up where your health insurance leaves off. Long term care insurance is not for only nursing home coverage, the ultimate goal is to help pay for alternatives, to keep you out of nursing homes for as long as possible!

The most common causes for LTC include…   

    • Auto & motorcycle accidents
    • Activities like skiing, horse-back riding, diving
    • Extreme sports: fractures, falls
    • Stroke & heart attack
    • Cancer
    • Diabetes
    • Arthritis & Osteoporosis
    • Alzheimer, Parkinson & MS
    • The aging process

It is covered by traditional health insurance or Government programs like Medicare.
It is very important to understand the limitations of Medicare and Medicaid. Medicare focus’ on cure versus care. It covers doctors, skilled care and hospitals. Medicaid pays health care for the poor. Many are not “eligible” and some must “spend down” their assets to qualify. Medicaid will typically only pay for care in a Nursing Home.

For more in-depth information on long term care, watch our webinar or click here to request a quote.

If you have any questions regarding long term care, our benefits counselors are here to help. Contact us at Member Benefits today!


US Census Bureau
Social Security Administration
The National Bureau of Economic Research
UCSF Research