4 common LTC missteps older Americans must avoid

With the U.S. facing a long-term care crisis amid an aging population and mounting concerns about affordability, two industry experts are urging American seniors to avoid these four most common faux pas when it comes to LTC:

1. Thinking Medicare will cover everything.
2. Thinking long-term care insurance is extremely expensive.
3. Waiting too long to plan.
4. Not planning for the financial impact on your family.

“What I hear the most is, ‘Well, I have Medicare Advantage’ or, ‘I have my Medicare supplement plan – that should cover everything, right?’” Katherine Pauley, long-term care regional specialist with AmeriLife, said.

“But it doesn’t, and nobody ever told them that. It is a huge misconception, and they don’t prepare early enough because they really believe that. Nobody has spoken to them about that.”

Pauley, who said she has spoken with around 300 clients about long-term care since February 2025 alone, said misconceptions about Medicare coverage are the biggest reasons why some Americans fail to plan adequately.

However, she added that many older individuals also have a preconceived idea that long-term care coverage is “going to be really expensive” — because, “back in the day,” some plans were.

“Now, they’re simplified issue products, and we can make it cheaper. And they’re not promising to cover $500,000, $600,000 worth of care. This is up to $300,000 in protection, but it’s a lot more affordable because insurers don’t have to do the major underwriting,” Pauley explained.

The problem with waiting too long

Pauley and Brenda Velazquez, senior vice president at Commonwealth, both agreed that failure to adequately plan for long-term needs is one of the biggest missteps seniors can make — one that also has repercussions for the loved ones who end up becoming their unpaid caregivers.

“Elder caregiving is not considered a milestone the way having a baby, buying a house, getting married or getting your first job is, so people don’t plan for it,” Velazquez noted.

She cited a Commonwealth study about the financial impact of elder care on family members, some of whom are aging themselves but can end up dipping into their own savings to cover care needs, thereby “putting themselves in a precarious position down the road.”

That study found 40% of unpaid caregivers “genuinely felt like they were unprepared” for the care costs not covered by Medicare, Social Security or LTCi.

“You’re not thinking about those opportunity costs that go to loved ones. There’s so little preparedness on the part of the unpaid caregiver or the care recipient,” Velazquez said.

Pauley said she has met with clients in their 70s who have not begun to plan for long-term care even though most people say they “just want to age at home” and many Americans have seen that their “neighbors, friends, distant family members have needed care at home.”

“They say, ‘I didn’t know that there are products that will help me cover that,’ or ‘I thought my Medicare would send a nurse in my home,’ or they’re healthy and they decide to wait,” Pauley said.

“And I have to explain, ‘Wait a second; when you need it, it’s not going to be there for you because it’s too late. You won’t be able to get any help. You’ll be on your own and you’ll try to hire somebody at the last minute, and that will eat into your assets.’ And then they are blown away because they’ve just never thought about this.”

At the same time, Pauley explained that LTCi “are going to be way more expensive than if you were in your 40s or 50s.”

“When I get in front of somebody who’s in their 60s, I already think they’re late to the game. But at least they’re not in their 70s. If they can health-qualify, there are still affordable options,” she said.

Better LTC planning

Both experts encouraged individuals to start LTC planning as early as possible and be transparent about their finances with close family members who will likely become future caregivers.

However, they both said financial professionals have a role to play too, and encouraged them to speak with clients about long-term care needs earlier rather than later.

Velazquez encouraged advisors to discuss products that include some benefits for the family members who will become caregivers. Pauley also suggested advisors broach the topic during conversations about Medicare or retirement planning, since health and retirement are already on the client’s mind at that time.

“Even if they don’t want to, it’s a conversation that must be had because I don’t want my clients to be broke. I want them to live the lifestyle that they want to live, not what their ailments make them live,” Pauley said.

“Advisors can help by just informing clients. They need to tell them this is going to be the single largest thing to affect your assets and your finances in the future. We must take care of it now. Let’s structure a long-term care plan to make sure that you are OK in the future.”

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