There are several reasons why long term care (LTC) insurance has not taken off despite the increasing numbers of people who are already 65 years and older. In fact, people who need it most are the one who ignore it, even surveys show that a lot of younger people aged 18-34 are more active in long term care planning.
The significance of long term care insurance is widely ignored despite the advantages and benefits it offer. Mainly, because of misconception, doubts, misinformation and most of the time due to the challenge it may bring to their financial stability.
These are the reasons behind the issue why ltc insurance has yet to catch on: http://www.infolongtermcare.org/long-term-care_information/6-myths-about-long-term-care/.
Long Term Care Insurance is the Rodney Dangerfield of insurance — it gets no respect.
The product is widely ignored despite the fact that Baby Boomers are already turning 65 and 25% of Canadians will be over 65 by the year 2036. We develop more health problems as we age — so why aren’t more people buying this kind of insurance?
The Canadian Life and Health Insurance Association reports that 74% of Canadians admit they have no financial plan in place to pay for long term care in their retirement planning. That will make things very difficult given that the current costs of care in long term facilities can easily exceed $5,000 a month. Personal care at home ranges from $12 to $90 an hour.
Here are five top reasons why LTC insurance has not taken off:
1. “The government will take care of me” We live in…
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