One of the most common questions people ask when considering long-term care insurance is:
“Will I ever actually use it?”
It’s a fair question. Nobody wants to pay premiums for years only to discover they never needed the coverage. However, the reality is that long-term care insurance is designed to protect against one of the most common and costly risks facing retirees today.
The Short Answer
Studies have consistently shown that approximately 50% to 70% of long-term care insurance policyholders will eventually file a claim and receive benefits during their lifetime.
The exact percentage varies depending on age, health, gender, and the type of policy purchased, but the likelihood of needing some form of long-term care is much higher than most people realize.
In fact, according to federal government estimates, nearly 70% of people turning age 65 today will need some form of long-term care services or support during their lifetime.
What Counts as Long-Term Care?
Many people mistakenly believe long-term care only means living in a nursing home.
In reality, long-term care can include:
- Assistance with bathing, dressing, or eating
- Help getting in and out of bed
- Medication management
- Memory care for Alzheimer’s or dementia
- Home health aides
- Adult day care services
- Assisted living facilities
- Skilled nursing facilities
Most claims begin with care received at home rather than in a nursing facility.
Why Do So Many People End Up Using Their Coverage?
As life expectancy continues to increase, so does the likelihood of experiencing a health condition that limits independence.
Common reasons people file long-term care insurance claims include:
- Alzheimer’s disease and other dementia
- Stroke
- Parkinson’s disease
- Arthritis and mobility issues
- Frailty associated with aging
- Serious injuries from falls
Even healthy, active retirees can unexpectedly find themselves needing assistance after a medical event or prolonged illness.
Men vs. Women: Who Uses Long-Term Care More?
Women generally have a higher likelihood of needing long-term care services because they tend to live longer than men.
As a result:
- Women are more likely to file claims.
- Women often require care for longer periods.
- Women are more likely to live alone in later years.
This is one reason why long-term care insurance premiums are often higher for women than for men.
What Happens If You Never Use Your Policy?
Another common concern is paying for coverage and never needing it.
Traditional long-term care insurance works much like homeowners or auto insurance. If you never experience a covered event, you may never collect benefits.
However, many newer policies offer alternatives, including:
- Hybrid life insurance and long-term care policies
- Asset-based long-term care solutions
- Return-of-premium options
These products can provide benefits even if long-term care is never needed, making them attractive to individuals who are concerned about “using it or losing it.”
The Bigger Question: Can You Afford Care Without Insurance?
Instead of asking, “Will I use my policy?” a better question may be:
“What happens if I need care and don’t have coverage?”
The cost of care continues to rise each year. Depending on where you live, care expenses can easily exceed:
- $30 per hour for home health aides
- $6,000 to $10,000+ per month for assisted living
- $12,000+ per month for nursing home care
A long-term care event lasting several years can quickly drain retirement savings, investments, and other assets that took decades to accumulate.
The Bottom Line
While no one can predict the future, the odds of needing some form of long-term care are significant. Research suggests that roughly half to two-thirds of long-term care insurance policyholders will eventually use their benefits, and nearly 70% of today’s retirees will require some level of long-term care during their lifetime.
Long-term care insurance isn’t just about protecting against a nursing home stay. It’s about preserving independence, protecting retirement savings, and giving families more options when care becomes necessary.
If you’re considering long-term care insurance, the best time to explore your options is before health issues arise and while premiums remain more affordable.
