Perception of lack of affordability crosses income levels
INDIANAPOLIS (Nov. 21, 2017) — Three-quarters of Americans—75%—say they don’t currently have long-term care (LTC) insurance, and more than half (53%) of those who don’t say it’s too expensive.
A survey conducted online by Harris Poll on behalf of OneAmerica® in August asked 2,065 adults age 18 and older1 whether they have LTC insurance, and if not, asked them why they don’t. Only 25% of adults reported having LTC insurance. “It is too expensive” was the most common reason chosen for not having LTC insurance (53%), ahead of “I don’t want to pay for something I may never need” (25%), “I’ve never heard of it” (13%), “I’ve heard negative things about it” (9%), and “I don’t know how to get it” (9%).
Furthermore, among those who do not have LTC insurance, nearly half—49%—of Americans with annual household income of $75,000 or more cited it being too expensive as a reason they don’t have LTC insurance.
Actually, it can be cost-effective
In reality, many middle-class families may find LTC protection a cost-effective way to prepare for the needs of growing older, while protecting their retirement income from the drain of unexpected expenses. Roughly 70 percent of Americans ages 65 and older will need some kind of help with the activities of daily living as they age. 
“Especially with asset-based LTC protection, many people preparing for retirement find they can reposition assets they already have to gain LTC protection,” said Chris Coudret, vice president and chief distribution officer, Care Solutions at OneAmerica. “Others find that a multi-pay premium option with guaranteed premiums and benefits fits well into their existing retirement strategy.
“November is Long-Term Care Awareness Month, and we want to spread the word that LTC protection—even protection including lifetime benefits—is still within reach for many Americans.”
With asset-based LTC protection, premiums are guaranteed, and some policies come with a return-of-premium guarantee in case of cancellation.
For more information and scenarios about how long-term care protection can help protect assets, download “Planning for Every Possibility” at www.oneamerica.com/ltcstudies.