Why do so few people have long-term care insurance in California?
If you do not have long-term care insurance in California, you are far from alone. In fact, some sources have shown that not even eight percent of the population of the United States has this type of insurance. What is holding everyone back?
The main reason, it seems, is just that the cost is so high. People are not willing to invest as much as it would take to get a comprehensive plan. On top of that, the costs are increasing. As a general trend, people are now living longer than they have in the past, which means that they face more medical challenges and need more care. This has made the cost of insurance go up accordingly.
Another reason could be that people think they have more money than they do, or that their money will at least go farther than it will. They may feel that they have saved up enough to pay for any of these costs out of pocket, rather than with an insurance plan. However, some people warn that the real cost of care if a serious problem arises can be more than expected. That savings account, which seemed so large before, could be depleted in a hurry.
Additionally, people often do not start planning for the future soon enough; you can see this when looking at the number of people who have significant savings set aside for retirement. If people don’t plan well for retirement, they often don’t plan for long-term care, either.
No matter how old you are, it is wise to make sure that you know all that you can about long-term care insurance, disability insurance, and the like.
Source: Time, “The Best Moves to Make So a Nursing Home Doesn’t Bankrupt You” Donna Rosato, Jan. 15, 2015