New insurance research shows consumers know they probably need long-term care insurance, but they don’t want to buy it.
Windsor-based LIMRA, an insurance and financial services research organization, found in a new study nearly six in 10 consumers said paying for long-term care services was a financial concern; for 10 percent it was their top concern. While two-thirds of consumers agree that most people need long-term care insurance, only 16 percent own any.
LIMRA’s 2016 Insurance Barometer found traditional long-term care insurance sales have been declining for nearly 10 years as a majority of consumers say they can’t afford it. One alternative to address consumers’ needs are products that combine life insurance and long-term care insurance into one policy.
The organization has tracked sales of combination products since 2007 and has found steady growth in new premium and new policies. New premiums increased from $2.4 billion in 2014 to $3.1 billion in 2015 and new policy counts more than doubled going from 100,000 to 220,000.
The research found for 36 percent of consumers, it’s the idea that a life benefit will be paid even if long-term care expenses are never needed. Similarly, 36 percent of all consumers and 41 percent of Millennials said a combination policy would be a more economical use of their assets.