Americans over 50 are concerned about long-term care costs, study finds
Nearly 60% of Americans over the age of 50 are worried about the costs of long-term care, while only 16% feel prepared financially, according to a recent study supported by the insurance industry.
The study was sponsored by Sun Life Financial and conducted by Kelton Research. While Americans are concerned, more need to focus on advance planning, rather than panicking, according to Bob Klein, Sun Life's vice president of Strategic Planning and Linked Benefits.
“The younger and healthier a policy owner is, the more leverage he or she will have for multiplying the original single premium into a long-term care benefit, which can range from three to seven times your original premium,” Klein said.
Klein recommends that adult children should start talking about LTC insurance with their parents when the parents believe they are five to 10 years away from retirement, although the sooner, the better, he adds. The recession has taken a toll on many Americans' nest eggs, leaving many daunted with the cost of paying for long-term care.