A 2024 comprehensive survey commissioned by Certification For Long-Term Care (CLTC) highlights a crucial gap in middle-income consumers’ understanding of costs and planning associated with long-term care (LTC).
Among the survey’s key findings:
• Upper-income consumers are more likely to recognize that, in the absence of insurance, most LTC costs will be paid out-of-pocket.
• In contrast, middle-income consumers are less likely to understand that critical fact.
“Another difference we identified is the approach to future planning,” said lead researcher Eileen J. Tell, CEO of ET Consulting. “Upper-income consumers are more inclined than their middle-income counterparts to engage in product purchases or make financial investments to prepare for LTC needs—such as buying long-term care insurance (LTCI) or increasing retirement savings.”
Middle-income consumers are less familiar with LTCI and less likely to meet with insurance agents to discuss options. They are more likely to cite affordability concerns when considering LTCI, which could signal a potential lack of understanding of its value proposition and the financial risks they might face with LTC. Middle-income respondents are also more likely to cite not needing LTC or reliance on family care as key reasons for not buying LTCI.
Middle-income individuals said that if they received information about options from a trusted advisor with knowledge of their personal situation or if objective, reliable information was available on a government-sponsored website, they might be more interested in the planning options presented.
Click to view highlights of the study findings
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