“When he goes in,” is a phrase we hear daily. It makes the hair on the nape of my neck twitch. Mainly because the assumptions behind the phrase are faulty and way, way out of date.

Three things to think about

First, if there is no long-term care insurance (LTCI), she will be the hands-on caregiver. He’s not going anywhere.

Second, according to a recent study by the American Association of Long-Term Care Insurance (AALTCI), more than 60% of new LTCI claims begin with home care. And the majority of claims end at home. With insurance, she will manage paid care with the help of a care coordinator provided by the insurer in most cases. He’s not going anywhere.

Third, she will most likely outlive him. He’s gone. She is more likely to be the one that moves to an assisted living community if care is needed and maintaining the home becomes too burdensome.

It’s not just nursing home care

“People mistakenly associate long-term care insurance exclusively with nursing home care,” explains Jesse Slome, executive director of the AALTCI. “When care is needed, people prefer to remain in the familiar surroundings and comfort of their own home. Long-term care insurance can cover costs associated with care services provided at home.”

AALTCI 2024 facts

Just over 1.3 million people in the U.S. receive care in nursing homes compared to over 5 million receiving care at home.

According to the AALTCI study, in 2023 the nation’s long-term care insurance companies paid $14.1 billion in benefits to some 353,000 individuals.

The majority of LTCI buyers are between the ages of 50 and 69 and comprise about 78% of policies sold. But less than 10 of Americans aged 50 and older own LTCI. Why so few? The risk is high and the cost can be catastrophic. Two fundamental reasons to have insurance protection.