Majority of Americans underestimate cost of long-term care

NEW YORK, July 20, 2022 /PRNewswire/ -- On a mission to improve the aging-at-home experience, insurance product and solution innovator, HCG Secure, today announced the results of an elder care survey, conducted with the Arctos Foundation and administered by AtotheZ Marketing.

The study found a lack of preparedness among respondents overall and only about one in ten individuals have long-term care insurance. Financial plans, wills, trusts, and health care directives are in place for only about three in ten. Respondents were also asked to give their expectations for the costs of long-term care and estimated, on average, $20,000 less than the average costs. When shown the costs of care, half of all respondents indicated they were 'not at all' prepared to cover those expenses.

"There is a concerning disconnect between the wealth of research we have on the caregiver burden and the high costs of long-term services and supports," said Tom Beauregard, CEO of HCG Secure. "The cost for in-home and facility care have increased at a rate double that of inflation since 2004; in turn, individuals are increasingly looking to family members to either provide unpaid care or to help pay for needed services. With this research we are exploring how financial challenges arise in retirement, so we can develop products to address the financial needs of families and lessen the burden/stressors of caregiving."

Seventy percent of those 65 and older will need long-term care. This leaves a massive gap for most Americans as only 1 in 10 have coverage. Only 20% feel prepared to pay for coverage, which often results in their children or other loved ones navigating, paying for, and or administrating care.

"The high cost of traditional insurance is out of reach for most and there's a major demographic shift taking place in our country, so it's likely that most people will need some type of extended care (whether at home or in a facility). The marketplace needs innovative solutions that offset the financial and emotional stress associated with supporting family members. That is why we're excited to be partnering with HCG Secure," said Steve Cain, Director at LTCI Partners.

HCG Secure and Actos Foundation partnered to conduct a survey of 402 individuals between the ages of 40-64 around the expectations of long-term care needs, costs, and preferences. The survey gauged general interest in insurance products inclusive of advocacy and navigation resources to help individuals at their time of need, as well as in advance. To access the comprehensive survey results, please visit https://hcgsecure.com/independent-research/