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Few Americans Understand Long Term Care Insurance

Wed, 01/24/2001 - 12:00am — Karen Stevenson
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The Center for Aging Research and Education (CARE) revealed early results from online Long Term Care survey. They found what they called "shocking" results. For instance, of respondents who considered themselves "financially knowledgeable", 78% do not own LTC insurance, 46% do not even understand it, and 16% believe that the government will cover any long term care needs that they have. On average, people overestimated the cost of LTC insurance by up to 400%. Respondents were also unclear about what LTC insurance covers, with most believing it covers only nursing home care. Adding to the perception that LTC insurance is unnecessary, nearly 50% are counting on their spouse to take care of their long term care needs.

The Center for Aging Research and Education (CARE) revealed early results from online Long Term Care survey. They found what they called "shocking" results. For instance, of respondents who considered themselves "financially knowledgeable", 78% do not own LTC insurance, 46% do not even understand it, and 16% believe that the government will cover any long term care needs that they have. On average, people overestimated the cost of LTC insurance by up to 400%. Respondents were also unclear about what LTC insurance covers, with most believing it covers only nursing home care. Adding to the perception that LTC insurance is unnecessary, nearly 50% are counting on their spouse to take care of their long term care needs.