5 long-term care insurance myths busted

Financial products like long-term care insurance are complex. When complex topics arise, people often look to friends and family to fill in the gaps in their understanding of the topic. Unfortunately, that leaves them susceptible to hearing myths rather than the truth. 

Financial myths are both commonplace and dangerous. A simple financial myth may be the reason you decide not to use a financial tool that would be beneficial for you, or to use a financial tool that doesn't meet your needs. Either scenario is likely to generate a poor outcome.

There are plenty of myths about long-term care insurance that could steer you in the wrong direction. Being aware of these myths means you'll have the knowledge you need to make educated decisions about how you'll pay for your care. 

Enroll in a long-term care policy now to protect your assets, choices, and loved ones. 

5 long-term care insurance myths busted

Long-term care insurance is an effective financial tool that can help you cover the rising cost of long-term care. Some of the biggest myths about long-term care insurance are as follows: 

Myth #1: You won't need long-term care

The truth: Nearly 70% of Americans ages 65 and older will need some form of long-term care, according to LongTermCare.gov. So, there's a strong chance that you'll need it too. 

Sure, the data also suggests that there's just north of a 30% chance you won't need long-term care, but is it really worth testing the odds? If you need long-term care, can you afford it out of pocket — and if you can, would you want to? Odds are that you'll need care at some point, and long-term care insurance can help you pay for it.  

Purchase a long-term care insurance policy today to lock in your access to care when you need it. 

Myth #2: Long-term care insurance won't help you age at home

The truth: Many long-term care insurance policies only provide benefits if you move into an assisted living facility or nursing home. But that's not the case for all policies. There are plenty of options that provide coverage even if you decide to age at home. These policies may: 

• Pay for renovations to make your home more accessible; 
• Pay for equipment that makes it easier for you to age in place; and 
• Pay family caregivers to take care of you

If you plan on aging in place, there are plenty of long-term care insurance policies that can help you do so. However, it's wise to compare your coverage options and choose a policy that will help you achieve your goals.  

Myth #3: Medicare will cover your long-term care expenses

The truth: "Medicare does not typically cover long-term care," says John Hill, president of Gateway Retirement. "Medicare is set up to cover healthcare, not custodial care like in-home, assisted living or skilled care (nursing home care)."

"Medicare will cover rehab services in certain situations," Hill says, but that coverage is limited. "After 100 days, there is no medicare coverage." 

Long-term care insurance could provide the coverage you planned to lean on Medicare for. 

Myth #4: You can pay for long-term care with your Social Security benefits 

The truth: Even if you receive the maximum Social Security benefit, it may not be enough to cover your long-term care expenses. For example, the maximum social security benefit for someone who retires at 65 in 2023 is $3,627 per month. The nationwide average daily cost for a shared room in a nursing home is $260. That works out to about $7,800 per month.

Even if you work until you're 70 years old, your maximum Social Security benefit will only be $4,555 per month based on 2023 limits. That's simply not enough to cover the cost of long-term care in most cases. Long-term care insurance can bridge the gap. 

Myth #5: You don't need long-term care insurance because your family will take care of you

The truth: People often plan on caring for the elderly members of their family, but that plan doesn't always work out. Some reasons your family may not be able to care for you even if they have all intentions of doing so include:

• Medical skills: Chances are that your family members aren't skilled healthcare providers. If you develop a condition that requires the assistance of a skilled provider, your family members may not be able to provide the care you need. 
• Careers: Long-term care is often a round-the-clock exercise. This means that the family members who care for you may not be able to work a paying job. If a financial need arises, your round-the-clock care may not be possible. However, some long-term care policies may pay family caregivers, so long-term care insurance can help solve this problem.  

Purchase long-term care insurance to protect your family today. 

The bottom line

There are plenty of myths about long-term care insurance, but you shouldn't fall for them. The truth is that long-term care insurance is an effective financial tool that can help you cover the cost of care, even if you plan to age in place. Purchase a long-term care insurance policy now to make sure you have access to the care you'll likely need later.