A mere 35 percent of Americans aged 40 and over have set aside money for their potential long-term care needs as they grow older, according to a new survey by the Associated Press-NORC Center for Public Affairs Research. Fewer than half (41 percent) have talked about their long-term care preferences with their families.
The survey comes at a time when the U.S. Department of Health and Human Services estimates that 70 percent of Americans who live beyond the age of 65 will need one type long-term care or another.
Americans 40 and over, according to the AP survey, frequently underestimate the cost of long-term care and over-estimate the amount government programs like Medicare will pay towards long-term care.
Only 21 percent of the survey respondents said they have long-term care insurance. When the survey drilled down on the question, only 12 percent were “very sure” their insurance policies cover long-term care, while 5 percent were “somewhat sure” and 4 percent were “less sure.”
More than three-quarters (77 percent) of Americans 40 and over favor federal tax incentives to encourage individuals to provide for their own long-term care expenses.
As a strategic partner of the 3in4 Need More Campaign, NAIFA is a strong supporter of education on the long-term care issue.
NAIFA encourages Congress and the administration to promote long-term care awareness. NAIFA also supports measures to encourage the offer of quality insurance products at people’s places of employment, such as allowing long-term care insurance to be included in employer-sponsored cafeteria plans and flexible spending arrangements.