Modest Long-Term Care Insurance Benefits Offer Practical Coverage Solutions

Long-term care insurance (LTCi) conversations commonly start with clients concerned about the high costs traditionally associated with private nursing home care, commonly cited at $100,000 annually. However, this figure represents a high-cost scenario that is not typical for most policyholders. Data shows that 10% of those over 65 needing care require paid services for two to five years, while 4.4% may need care beyond five years. Many LTC recipients retain some income, with average Social Security benefits around $2,000 monthly and over half also receiving pension income averaging $900 monthly. Insurance professionals are encouraged to highlight the value of modest LTCi benefits, which can significantly supplement income and help manage care costs without requiring clients to purchase high-cost, comprehensive policies. Modest benefits also provide families with additional time to arrange care and extend personal savings. The focus in advising clients should be on securing appropriately sized policies rather than maximum coverage, thereby offering peace of mind without overwhelming financial commitment.