When it comes to talking about healthcare as families, particularly for those who are younger in age, financial planning for long-term care may not be on the radar. Long-term care insurance helps to cover care that lasts longer than a few months and involves assistance with daily activities.
Find Out: Here’s the Minimum Salary Required To Be Considered Upper-Middle Class in 2025
Explore More: These 10 Used Cars Will Last Longer Than an Average New Vehicle
According to the Administration for Community Living, someone turning 65 today has nearly a 70% of needing these long-term care services in the years ahead. Even with this high percentage, here’s a look at five reasons the middle class aren’t planning for long-term care insurance.
One of the top reasons why middle-class families aren’t planning for long-term care insurance is that they either underestimate the need for it or think they won’t need it at all, according to Kelly Augspurger, certified senior advisor (CSA), certification for long-term care (CLTC), long-term care claims professional (LTCCP) and long-term care insurance specialist with Steadfast Insurance.
“People also underestimate the consequences to their family and finances when care is needed,” said Augspurger, who’s also an instructor for the CLTC course. “Providing care can be very taxing physically, mentally, emotionally and financially.”
Read Next: 10 Things the Middle Class Won’t Be Able To Afford in Less Than a Decade
Augspurger said many middle-class people have never heard of this insurance or they don’t know much about it. While many people may think it only pays for nursing home care, today’s policies are comprehensive and can pay for home care and facility care, according to her.
A person’s age, health, gender, benefits and riders chosen, along with the type of policy, will determine the premiums for long-term care insurance. Augspurger said even a small policy with a starting monthly benefit of $2,500 with a two-year benefit period and a 3% inflation protection (growth) can be very helpful and take pressure off a person’s finances.
Here’s a quick look at how much it might cost, according to Augspurger. Take a 55-year-old couple in average health and living in Ohio. If they want a traditional or stand-alone policy with a starting monthly benefit of $3,000 each, a three-year benefit period each, 3% inflation protection and shared benefits, their combined monthly premiums would be about $340.
