What Has COVID Taught Us about Caregiving?

The COVID-19 pandemic intensified demand for care services while making them increasingly complex, accelerating pre-existing trends toward longer-duration and more acute long-term care needs.

According to Genworth’s Caregiving in COVID-19 Beyond Dollars Study 2021, conducted approximately every three years since 2010, the fundamental drivers of increased care demands remained consistent with historical patterns. The research examines caregiving’s broader family impact beyond direct service costs tracked in Genworth’s annual Cost of Care Survey.

Brian Haendiges, President and CEO of Genworth U.S. Life Insurance, emphasized: “the physical, financial, emotional and psychological strain of caring for a loved one is deep and real for caregivers, and their family and friends.” He stressed the collective responsibility to address the emerging long-term care crisis.

Extended Lifespans and Growing Prevalence

Longer life expectancies mean higher probabilities that individuals or their loved ones will experience long-term care needs. As populations age and medical advances improve, conditions requiring prolonged care become increasingly common, with many preferring home-based care environments.

Increasing Care Complexity

The study revealed significant shifts in care requirements. Approximately 49% of care recipients needed assistance across all aspects of daily living, compared to 39% in 2018, while those requiring very minor assistance dropped from 12% to 8%. Notable increases appeared in cognitive impairments (32%, up from 26%), age-related physical limitations (47%, up from 44%), and accident-related rehabilitation needs (23%, up from 21%).

Extended Care Durations

Average care episodes lengthened from three years in 2018 to 3.5 years in 2021, reflecting more prolonged care requirements.

Home Care Preference with Implementation Challenges

Over three-quarters of recipients (79%) preferred home-based care to facility settings. However, the proportion moving in with family caregivers dropped significantly–from 21% in 2018 to 12% in 2021–possibly reflecting COVID-19 exposure concerns, particularly for families with children.

Employment Impact on Family Caregivers

A substantial portion of family caregivers reported negative employment consequences. Among women, 56% reported caregiving negatively affected work capacity, compared to 45% of men. Income loss was significant: 40% of men and 27% of women reported losing a majority or more of annual income due to caregiving responsibilities.

However, pandemic-related employer flexibility offered some relief. In 2018, 46% worked reduced hours and 35% took repeated absences; these figures decreased to 38% and 27% respectively by 2021. The sustainability of such flexibility beyond the pandemic remains uncertain.

Rising Financial Burden

Caregivers increasingly drew upon financial reserves through multiple mechanisms. By 2021, compared to 2018:

• Reducing retirement contributions increased from 42% to 54%
• Spending intended inheritance funds rose from 38% to 50%
• Selling personal possessions increased from 35% to 43%
• Cashing life insurance policies increased from 26% to 41%
• Borrowing from family/friends increased from 31% to 40%

Savings and luxury spending reductions remained relatively stable (63-66% for savings; 60-63% for reducing discretionary expenses).

Health and Wellbeing Consequences

Of female caregivers, 59% reported negative health impacts versus 43% of men. In-home caregivers experienced substantial psychological and physical strain: 48% reported stress symptoms, 46% experienced reduced personal time, and 42% reported negative mood changes. Many also experienced sleep disruption, isolation, guilt, and weight changes.

Long-Term Care Insurance Protection

Only 23% of care situations involved insurance coverage. When LTC insurance was utilized (14% of cases), 61% of beneficiaries reported out-of-pocket costs of $500 or less, despite higher likelihood of using costly assisted living facilities. Other coverage came through life insurance riders and annuities with care provisions.

Behavioral Shifts Toward Planning

Four of five adults reported taking action to increase financial preparedness based on pandemic lessons regarding long-term care, indicating growing awareness of aging-related vulnerabilities.

If you need help planning for long-term care or caregiving needs, contact our office today to schedule a consultation with attorney Trey Stegall.