A recent Harris survey concluded that half of Americans fear falling more than cancer, and the vast majority want to age in place as opposed to a rest home. Surprisingly, 47% of those not yet retired said that their current home will not be safe to age in place due to stairs.
86% of respondents stated that having Long Term Care insurance (LTC) is very important, the pandemic raising concerns about nursing homes. Sadly, 60% said that they would rather die than live in a nursing home. The pandemic has also made individuals consider whether they have a plan in place to live in their home while receiving long term care.
Fortunately, there are LTC policies that allow for policy holders to pay for costs other than living expenses. As an example, paying a contractor or family member to install lifts or railings so that they can remain in their home is allowed with certain policies.
An interesting finding from the survey revealed that many people misunderstand Long Term Care (LTC) coverage. 25% of those surveyed said that they had LTC insurance, yet in reality only 15% of the population has such coverage… most of them older adults. The respondents said they purchased their LTC coverage through work, confusing LTC with Long Term Disability.
When asked to estimate the annual cost of a room in a nursing home, the survey respondents guessed $43,000. The average price is $93,000 annually for a semi-private room. They estimated that the annual cost of home care at $33,000, when in reality it is $55,000.