LIFE Foundation Supports Long-Term Care Awareness Month with
New Educational Resources for Consumers
Arlington, Va. – November 1, 2012 – According to recent research from the nonprofit LIFE Foundation and LIMRA, paying for long-term care services is a top financial concern for a majority of consumers today, yet few state that they own long-term care insurance – the very product that can provide them with a financial safety net to help pay for this increasingly expensive care. In fact, research from LIMRA indicates that less than two percent of consumers have a long-term care policy currently in force.
November is Long-Term Care Awareness Month, created by the American Association for Long-Term Care Insurance. In support of the campaign, LIFE is making available new educational resources and tools focused on long-term care insurance to help insurance carriers and agents educate consumers about the importance of evaluating their coverage needs.
“The reality is that 70 percent of those over age 65 will require some form of long-term care, and with cost of care on the rise, it’s critical that people think about their care preferences and evaluate whether they are financially prepared,” said Deb Newman, CLU, ChFC, LTCP, chair of the LIFE Foundation’s Board of Directors and president of Newman Long Term Care. “Far too many people rely on personal savings, their retirement fund or even family members to step in when care is needed, but those strategies are rarely sustainable. It’s important that people understand the insurance options available so that if the time comes, they will have the financial independence and security they want or need.”
Long-Term Care Insurance Resources & Research
LIFE has developed a new consumer-friendly guide – What You Need to Know about Long-Term Care Insurance – that includes information about the benefits of having coverage, the amount of coverage needed, when to buy and ways to save on premiums, among other useful consumer tips and information. Companies and agents can access the guide on LIFE’s website or by purchasing hard copies through the organization’s product catalog.
LIFE also has produced a series of educational videos covering a range of issues and long-term care insurance benefits. The five videos are available here and include:
- Protecting My Assets
- Avoid Becoming a Burden to My Family
- Obtaining High Quality Care
- Advantages of Buying Early
- Achieving Peace of Mind
LIFE, in partnership with LIMRA, also released new research this year looking at consumer financial concerns and long-term care insurance ownership and preferences. According to the 2012 Insurance Barometer Study:
- The majority of consumers are concerned with paying for long-term care services. Paying for long-term care services is a top financial concern for nearly 6 in 10 consumers (59 percent).
- Consumers recognize the need for coverage. Two-thirds of consumers believe that “most people” should have long-term care insurance, half believe they “personally” should have coverage.
- A gap exists between stated need and ownership of long-term care insurance. Despite the belief that long-term care insurance is important, only 14 percent of consumers state they own it. In actuality, the percentage is even lower. Other LIMRA research indicates there are more than seven million long-term care policies currently in force — which is less than 2 percent of consumers.
- Long-term care insurance ownership increases with age and income. Just 12 percent of those ages 25-44 state that they own long-term care insurance versus 16 percent of those ages 65 or older. In addition, 8 percent of those with income under $50,000 state that they own long-term care insurance versus 22 percent of those with income of $100,000 or greater.
- Long-term care insurance and life insurance ownership are related. Those with life insurance are significantly more likely to own long-term care insurance than those without.
For a copy of the 2012 Insurance Barometer Study or for more information about the LIFE Foundation and the resources available around long-term care insurance, please contact Jaimee Niles at firstname.lastname@example.org or (703) 888-4450.
The Life and Health Insurance Foundation for Education (LIFE) inspires the public to take personal financial responsibility through the ownership of life insurance and related products. LIFE is the voice of choice for the industry providing the highest quality independent and objective information about life insurance and related products. To learn more about LIFE, go to www.lifehappens.org.