Do you really need long-term care insurance in America? Here’s what the data actually says

What most people this age neglect is the true risk of needing long-term care. According to a 2025 survey by Northwestern Mutual, only 61% of U.S. adults expect to experience a long-term care event in their senior years (2). But only 42% of Boomers and 35% of Gen X'ers say they have planned financially for the possibility.

Unfortunately, the likelihood of needing long-term care is substantially higher. It’s also exorbitantly expensive. Ignoring this risk could be one of the most financially risky moves you can make in retirement.

Here’s why the data suggests this is an underappreciated risk for American seniors.

Financial blind spot

There could be two key reasons why many seniors neglect the risk of long-term care.

First, they might not be aware of the true cost of this form of medical attention. According to Miliman’s 2025 Long-Term Care Index (LTC Index), the lifetime cost of long-term care for someone aged 65 is $135,000.

That’s an average estimate. The cost is significantly higher for women ($171,000) and much lower for men ($98,000). Nevertheless, most people are looking at a six-figure drain on their finances at a time when they’re living on a fixed income.

Second, many American seniors could be counting on the wrong financial safety net to cover them. Roughly 58% of Americans wrongly believe Medicare will cover long-term care (LTC) expenses, according to the 2025 Nationwide Retirement Institute Long-Term Care survey (3).

The study called this a “dangerous myth.”

“Medicare’s LTC coverage is limited and short-term, and does not provide the extended, day-to-day support aging Americans will eventually need,” according to the report.

Simply put, if you want to avoid the risk of a six-figure meteorite hitting your retirement plan, you probably need a backup plan. Preferably, long-term care insurance.

What is long-term care insurance?

As the name suggests, long-term care insurance helps pay for everyday support you might need as you age — things like nursing care, therapy, help with bathing and dressing, meal prep and household tasks.

Like any other insurance policy, this one comes in many variations. You could, for instance, sign up for a hybrid plan that combines life and long-term care insurance or a short-term care plan. From home health care to assisted living, there are many features to consider while shopping for this form of insurance.