Why do so few Americans purchase long-term health insurance?
Asked by: Aliya Rippin V | Last update: September 8, 2025Score: 4.4/5 (16 votes)
Why is the popularity of long-term insurance low?
Today, most insurers have stopped selling stand-alone long-term care policies: The ones that still exist are too expensive for most people. And they have become less affordable each year, with insurers raising premiums higher and higher.
Do most Americans have long-term health insurance?
Even though federal estimates suggest 70% of people over the age of 65 will need long-term care before they die — such as living at an assisted living facility — only 3% to 4% of Americans age 50 and older are paying for long-term care policies.
What percentage of Americans use long-term care?
Key Long Term Care Statistics
Only 7.5 million Americans, or about 3.3% of the population, has long term care insurance. On average, a female will need 3.7 years of long-term care services while a male will need 2.2 years. 20% of Americans over 65 will need long-term-care for more than 5 years.
What percentage of retirees have long-term care insurance?
Who Has Private Long-Term Care Insurance? Among adults age 65 and older, 12.4 percent (or 4.8 million adults) had coverage. Only 3.0 percent of African Americans age 55 and older and 2.4 percent of Hispanics were covered by private long-term care insurance.
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What is the biggest drawback of long-term care insurance?
One of the biggest drawbacks of getting long-term care insurance is the risk of losing all the premiums you have paid over the years. If you end up not needing long-term care services, you won't be eligible for coverage. This means the money you've spent for coverage goes down the drain.
At what age do most people need long-term care?
Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years. Women need care longer (3.7 years) than men (2.2 years) One-third of today's 65 year-olds may never need long-term care support, but 20 percent will need it for longer than 5 years.
How long does the average person stay in long-term care?
About one in five of all adults (22 percent) will have a care need for more than five years. The average duration of care is higher for women (3.6 years) than for men (2.5 years).
What are the odds of needing long-term care?
Roughly 70% of people age 65 and older will need some type of long-term care during their lifetime.
What is the most common diagnosis in long-term care?
One of the most common diagnoses seen in the LTC setting is dementia. A common misconception in regard to rehabilitation in the geriatric population is that patients with dementia cannot benefit from skilled speech pathology services.
Why do you think purchasing LTC insurance is so difficult?
The qualifications and underwriting
Obtaining long-term care insurance becomes increasingly challenging as you age or if pre-existing health conditions are present. Some people may find it difficult to qualify for coverage or may face higher premiums based on their health statuses.
What is the average monthly health insurance payment in the US?
The average national monthly health insurance cost for one person on an Affordable Care Act (ACA) plan without premium tax credits in 2024 is $477. Wondering how insurance premiums are decided?
Who would most likely need long-term care insurance?
According to the Department of Health and Human Services research, 51% of women aged 65 and over will need paid long-term care. Meanwhile, 39% of men who are 65-plus will need such care. That differential helps explain why long-term-care insurance is typically more expensive for women than men.
What are the prime ages to purchase long-term care insurance?
The Best Age To Buy
The American Association for Long-Term Care Insurance (AALTCI) says that the largest cohort of individuals taking out an LTC policy do so between the ages of 55 and 64. 3 That may seem early, considering the vast majority of claims occur when people are in their 70s or 80s.
Why would you be denied long-term care insurance?
When it comes to getting long-term care insurance, your current health matters. In fact, one of the biggest reasons people are denied long-term care insurance is because they have a pre-existing medical condition or disability that makes it more likely they'll require care sooner.
Why are less people buying life insurance?
There are likely many reasons for that drop-off. For one, younger generations are deferring big financial and life milestones such as getting married, buying a home and having kids relative to older generations. Each of these events generally acts as a key trigger to buy life insurance, experts said.
What percentage of people actually use their long-term care insurance?
If you purchase that type of coverage, your lifetime chance of using policy benefits will fall somewhere between 35% and 50% -- because most people buy this coverage and use it to get care in their own home.
What is the average life expectancy in long-term care?
From 1999, life expectancy in LTC increased until 2006 for women (1.91; 1.87–1.94 years) and 2008 for men (0.94; 0.91–0.98 years). Thereafter, life expectancy in LTC declined rather steadily, reaching 1.45 (1.42–1.48) years for women and 0.78 (0.76–0.80) years for men in 2018.
What percentage of people over 65 need long-term care?
According to our research team's analysis of the latest available data, the following can be determined: 70% of adults aged 65 years and older will require long-term care at some point. The average length of stay in long-term care is 3.2 years. Just over 20% of residents will require care for 5 years or longer.
Does Medicare pay for long-term care?
Long-term care
Long-term supports and services can be provided at home, in the community, in assisted living, or in nursing homes. Individuals may need long-term supports and services at any age. Medicare and most health insurance plans don't pay for long-term care.
Where do most people receive long-term care services?
Most long-term care is provided at home. Other kinds of long-term care services and supports are provided by community service organizations and in long-term care facilities. Examples of home care services include: An unpaid caregiver who may be a family member or friend.
Do people live longer at home or nursing home?
This is a lot of added stress, on top of the emotional trauma that can impact your senior from a big move. Studies have found that patients that live in their own homes have a longer life expectancy than those who enter nursing homes.
Who is a good candidate for long-term care?
In order to maximize insurability and any potential health rate discounts, we recommend a target age range between 45 and 65.
Will 70% of Americans need long-term care?
Americans are living longer these days—and the longer we live, the more likely it is we'll need some extra help. Whether it's due to a disability, a chronic illness, or other challenges, a person turning 65 today has a nearly 70% chance of needing long-term care in the years they have left.