Purchasers of true group long-term care insurance tended to be slightly older and more cost conscious in 2009. The American Association for Long-Term Care Insurance reports more than one-third (37.2 percent) of new group buyers were age 55 or older compared to 28 percent for the prior year (2008).
"Younger employees likely decided they could postpone the decision," says Jesse Slome, executive director of AALTCI.
Nearly half (45.4 percent) of new enrollees selected daily benefit levels of $149 or less, about an 8 percent increase compared to the prior year. The most common benefit period selected remains five years, and some 6.4 percent of new claims were initiated by individuals age 59 or youngerOne-third of small businesses still don't offer voluntary benefits. Experts at Colonial Life say there are a number of misconceptions that keep small businesses from expanding their benefits packages with voluntary benefits, including:
- Fear of low employee participation. Employers usually add voluntary benefits because employees ask for them, and employee enthusiasm for these products is on the rise. A recent study showed that 71 percent of employers expect their workers to be more enthusiastic about voluntary benefits during the next 12 months.
- Concern over the burden of human resource administration. Most employers note only slight or moderate increases in administrative costs when they add voluntary benefits.
- Worry over the amount of time employees spend enrolling in benefits. Only one in 10 businesses feels enrollment time hampers productivity and takes away from core business operations.
Research from Colonial Life shows the most frequently offered types of voluntary coverage among small businesses are short-term disability, long-term disability and supplemental life. Cancer and accident insurance are also gaining traction. In addition, long-term care insurance is considered to be one of the fastest-growing voluntary products, fueled by the interest of baby boomers who have witnessed the need for coverage for their aging parents.
