Agents seeking to locate long-term care insurance leads should understand that as the American workforce ages, concerns abound regarding long-term care needs and the benefits offered from employers, according to a recent report from Prudential Financial Inc.
The study, Long Term Care Insurance, demonstrates only a small number of employees comprehend the benefits of long term care insurance. Only about one-quarter of workers plan to utilize insurance in order to fund long term care expenses.
Lori High, president of Prudential's Group Insurance unit, notes, "As Baby Boomers begin thinking about life after age 60, they grasp the implications of longer lives, post-retirement finances and lifestyles and nursing care costs. As a result, workers are more aware of their own future long-term care needs and the impact on their retirement lifestyle."
Individuals with care-giving experience place higher value on employee benefits including long term care insurance, due to the fact they have witnessed how inadequate insurance coverage can take away resources. Unfortunately, there continues to be a gap between this recognition and action to offer an adequate solution through the buying of long term care insurance, according to High.
Agents hoping to obtain long term care insurance leads should take note of these findings:
- Three in 10 workers claimed they do not have a plan or do not expect to require long-term care services for them or a spouse;
- Among the individuals reporting they do not have a plan, their expectations may be unrealistic due to the increasing costs of long term care. The most common avenues of funding cited for long term care are 401(k) or retirement savings, followed by Medicare;
- The education gap is larger for women. Women oftentimes are more responsible for the care giving and demonstrate more experience with care giving, yet they are less likely to have a plan in place for their own long-term care needs in comparison to men.
As it relates to Medicare, more than a third of those who participated in the survey believe that Medicare will cover their extended care expenses. These individuals do not realize that Medicare only covers a small portion of all long term care costs, excluding the majority of custodial care services.
"Americans recognize the importance of each dollar spent on employee benefits - both employers and their employees - and are looking for the best coverage their money can buy," High added.
Agents can increase their long term care insurance leads by providing the best coverage for clients their money can buy.