Long-term care (Image: Shutterstock)
Regardless of how well someone has planned for retirement, paying for long-term care can be financially and emotionally overwhelming. Seniors needing long-term care will pay an average of $138,000 each year, according to the U.S. Department of Health and Human Services.
Although it may be tempting for healthy people to assume they never will need such care, a 65-year-old has a 7 in 10 likelihood of needing some form of long-term care during their remaining lifetime. Nevertheless, only 3% of Americans own any type of long-term care insurance, according to LIMRA estimates.
Although retail marketplace solutions exist, including standalone insurance and hybrid life policies, the workplace also can be a good resource for working adults to start preparing for their potential long-term care needs. Two in five employees consider this benefit to be very important, according to LIMRA. However, the 1 in 5 employees who want long-term care insurance say it currently is not offered through their employer. Uncertainty also hampers the workplace opportunity as more than half of employees cannot positively say whether they have access to a long-term care benefit.
A majority of employers also acknowledge this need, with 54% expecting their workers to be very interested in this benefit five years from now. Many employers also are adding caregiving benefits and paid family medical leave, which help support broader long-term care needs.
Although long-term care solutions through the workplace can be especially appealing for millennials, most products on the retail side are marketed to older adults. By making long-term care solutions more widely available through the workplace, younger adults can benefit from locking in more affordable rates and enrolling in combination life insurance products that provide for long-term care.
LIMRA research suggests carriers that currently do not offer a workplace long-term care solution will soon enter the market. With government regulations, such as the Washington Cares Act, aimed at addressing this need, the environment might become more favorable for marketing long-term care products in the workplace. Improved targeting of recent caregivers and small businesses may lead to warmer audiences for workplace long-term care solutions.
“A successful financial plan should address a person’s whole financial situation, including what happens when they can no longer take care of themselves,” LIMRA concluded. “Starting to plan young can help safeguard against the likelihood of being denied long-term care insurance when it’s needed. Going through the workplace for long-term care solutions can help provide a launchpad for long-term care planning, helping Americans take the steps today to secure their financial tomorrow.”
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