A recent study by Certification for Long-Term Care reveals a critical gap in understanding among middle-income consumers regarding long-term care insurance (LTCI). Many consumers significantly underestimate their need for and the affordability of LTC plans. Because of these misconceptions, many middle-income individuals are unlikely to purchase the long-term care coverage they may require in the future.
The study highlighted several key assumptions driving this trend: a belief that long-term care won’t be necessary, a reliance on government programs or personal savings, and a perception that LTCI premiums are prohibitively expensive. For instance, 39% of middle-income consumers cited affordability as the primary reason for not planning to purchase LTCI, demonstrating the need for licensed agents to educate their clients on the need for long-term care. ARTICLE