Consumers Should Avoid These Misconceptions About Paying and Planning for Long-term Care
RADNOR, Pa.--(BUSINESS WIRE)--Nov 5, 2019--
Planning for long-term care needs has become an increasingly important topic as the population ages and people are living longer. While the effects of a life-changing health event could impact the entire family, research released by Lincoln Financial Group during Long-Term Care Awareness Month (November) shows that consumers don’t know the entire truth about long-term care needs and planning. Lincoln is helping dispel some common misconceptions.
“Proper planning for potential long-term care needs in the future has never been more important,” said Heather Deichler, senior vice president of MoneyGuard Product Management, Lincoln Financial Group. “While it can be a challenging and emotional topic to think about and discuss, tackling it head-on and before care is needed can make a big difference in the care one receives, the impact on loved ones and a family’s financial security. Unfortunately, the realities of long-term care are often misunderstood. Long-Term Care Awareness Month is a perfect time to bring clarity to the topic and spark meaningful conversations between families and financial professionals.”
Misconception 1: Planning can wait
Financial professionals believe age 50 is the ideal age to plan for long-term care, but clients typically wait until age 65 1. With more than half of Americans turning 65 projected to need some type of long-term care in the future 2, planning early can help avoid rushed and potentially expensive decisions. Rates for long-term care services vary greatly depending on the type of care and location with national annual averages ranging from $49,920 for a full-time home health aide to $105,485 for a private room in a nursing home 3.
Planning early while still healthy can also increase the likelihood of being approved for an underwritten long-term care funding solution, and potentially make the policy more affordable with greater care benefits and options.
Misconception 2: You only need to talk with family to plan for long-term care
Lincoln research finds that 60 percent of people have discussed long-term care with their spouse, children, parents or friends 4. That is good news, considering that most long-term care events begin in the home with family or friends providing the initial care. However, only 5 percent have consulted with a financial professional about long-term care. The research also finds that 63 percent do not have any type of long-term care plan — informal or written 4.
A thorough long-term care plan should include conversations with both family and a financial professional together and cover key elements, including:
Misconception 3: There are few insurance options to help fund long-term care needs
Despite an expanding private insurance market, which now includes several different types of solutions, there is relatively low familiarity of any of the options among consumers. With the low level of familiarity, it’s not surprising that 57 percent of those surveyed believe a long-term care solution is only beneficial if you use it 4 even though hybrid solutions, which are life insurance or annuity products with long-term care riders, are designed to meet multiple needs. When presented with different options, survey respondents were significantly more likely to find hybrid life insurance products that combine long-term care coverage if you need it, and a death benefit if care is not needed, the most appealing.
“When it comes to long-term care planning, there are a lot of decisions to consider. It is essential to start planning early and have the right people in the discussion,” said Bill Nash, senior vice president and head of distribution for MoneyGuard solutions, Lincoln Financial Distributors. “Financial professionals can bring expertise to the conversation and help families plan for aspects they may not have considered or truly understood, such as the potential costs of long-term care and their impact on retirement plans, what’s covered by Medicare and Medicaid, or private insurance options. With understanding of these types of topics, families and their loved ones can develop thorough plans to help individuals age with dignity and independence.”
To help families and their financial professionals start the conversation and develop a plan for potential long-term care needs and expenses, Lincoln provides the following tools and resources:
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. The company had $261 billion in assets under management as of September 30, 2019. Lincoln Financial Group is a committed corporate citizen included on major sustainability indices including the Dow Jones Sustainability Index North America and FTSE4Good. Dedicated to diversity and inclusion, Lincoln was recognized by Forbes as one of the Best Large Employers 5, Best Employers for Diversity, and Best Employers for Women. Lincoln also earned perfect 100 percent scores on the Corporate Equality Index and the Disability Equality Index. Learn more at: www.LincolnFinancial.com. Follow us on Facebook, Twitter, LinkedIn, and Instagram. Sign up for email alerts at http://newsroom.lfg.com/.
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KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA
INDUSTRY KEYWORD: MANAGED CARE MEN PROFESSIONAL SERVICES FAMILY CONSUMER HOSPITALS NURSING INSURANCE WOMEN SENIORS FINANCE HEALTH CONSULTING
SOURCE: Lincoln Financial Group
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PUB: 11/05/2019 03:00 PM/DISC: 11/05/2019 03:01 PM