How Does LTCi Affect Families and the Economy?

When it comes to aging and financial security, long-term care insurance (LTCi) plays a much bigger role than most people realize. It doesn’t just help pay for care — it can also improve the financial stability of families and even boost the U.S. economy.

Research published in the Journal of Health Economics shows that more than 56% of Americans over age 65 will need some form of long-term care in their lifetime. Yet, only about 3–4% currently own private long-term care insurance.

The study found that while LTCi doesn’t necessarily reduce the need for family caregiving, it changes how families plan. Parents with coverage are less likely to rely on their adult children for care, which allows the next generation to stay in the workforce and maintain stronger household finances. This “family spillover effect” benefits both families and the broader economy.

As families grow smaller and care costs rise, LTC planning has never been more important. Investing in private long-term care insurance can give loved ones financial flexibility, peace of mind, and the freedom to focus on what really matters — quality of life.

Learn more about how LTCi impacts families and the economy