Bridging the Long-Term Care Knowledge Gap

When my mother turned 90, she wanted one thing, to spend her birthday with family — mostly, to see her grandkids. At her party, we all watched as she savored her favorite treat — angel food cake with strawberries and whipped cream. This is just one of the many great moments I remember of my mother after she was diagnosed with dementia.

Our family was able to make memories like this because my mother’s long-term care insurance policy provided her with affordable and appropriate care. Instead of spending time worrying about how to find and afford the care my mother needed, we were able to bring her to see her grandkids, go shopping, and enjoy all her other favorite things.

After 30 years in the long-term care industry, I’ve seen firsthand the difference it makes to have a long-term care insurance policy. But for many families, this isn’t the case.

A new survey¹ aimed at understanding the state of long-term care planning between different income groups revealed a significant gap in planning awareness between middle- and upper-income consumer groups.

CareScout partnered with the Certification for Long-Term Care (CLTC) training organization as well as the consulting firms Oliver Wyman and ET Consulting to survey 1,050 individuals across separate income groups. The survey showed that while 77% of upper-income consumers are familiar with long-term care insurance, only 67% of middle-income consumers share that same awareness. While both groups expressed similar concerns about the impact long-term care might have on their retirement savings, their understanding of how to pay for long-term care differed significantly.

Upper-income consumers who did not have a long-term care insurance policy were aware that the cost of long-term care would need to be paid out-of-pocket. Conversely, middle-income consumers were more likely to underestimate the total costs of long-term care and incorrectly assume these costs would be covered by services such as Medicare or Medicaid.

Familiarity with long-term care insurance products and planning options remains an obstacle for middle-income consumers. Families are often squeezed by competing financial priorities, unsure of when to begin planning and how to afford care.

The survey shows that these middle-income consumers were likely to seek information from trusted sources, such as an advisor or government website. However, without these resources readily available or promoted, consumers may feel hesitant to pursue proactive planning for long-term care.

While less aware than upper-income consumers, middle-income consumers were still “likely” or “very likely” to purchase long-term care insurance, according to the survey, but expressed concerns with affordability. Study participants were presented with several long-term care insurance product prototypes. The model resembling health insurance with a 20% co-pay generated the most interest, suggesting a more flexible, familiar structure to long-term care insurance could appeal more broadly across income groups while also addressing affordability concerns.

Of those surveyed, families with prior caregiving experience had a higher awareness of long-term care needs and costs. Having lived through the emotional and financial tolls associated with family caregiving, they're often more willing to be prepared for their own long-term care needs. This underscores an important point: raising awareness among those who have yet to encounter caregiving is essential, especially for middle-income families who may otherwise delay or overlook planning altogether.

Empowering middle-income consumers with the right information and resources can help them make informed choices about their long-term care planning, avoiding the all-too-common assumption that government programs will foot the bill. Additionally, the survey points to a promising strategy: educating consumer support networks like family and friends can play an important role in guiding consumers toward sustainable long-term care planning.

Studies like this show that more research is warranted to explore better insurance product models. By creating insurance products that align closely with the realities and financial constraints of middle-income consumers, the long-term care insurance industry can support a growing market that wants to plan for its future.

I was fortunate to see the advantages of long-term care planning firsthand, in my personal and professional life. As my mother’s health began to decline, I didn’t have to worry – her policy gave us options.

By bridging the gap, we’re not only offering financial solutions, but we’re also giving families like mine the power to age with dignity, choice, and the ability to embrace life’s important moments together. Long-term care planning can give older adults and their care circles the opportunity to focus on life, rather than the logistics of care.

For my family, it made all the difference.