When it comes to long term care insurance (LTCi), many insurance agents claims that getting their customers to purchase it is a difficult sale. Getting a life insurance is easy because it financially supports a family incase of a sudden premature death. In case of long term insurance its the longevity risk that matters. According to National Center for Health Statistics, the life expectancy of a new born American male today is 75, but it was 46 in 1900. With increase in life expectancy, long term insurance might have gained more importance.
A 2011 study sponsored by Genworth found that most adults believe that LTCi should be purchased between the ages of 45–64, yet 82% of this age group has not purchased a policy. The study also found that since the 2008 financial crisis, only 20% of adults have taken any action on their financial strategy. This means there is a large group of people who realise that they should take action, but need to learn about their options. People also have misunderstanding about Medicare’s coverage for long-term care. Agents should clearly explain to their clients about the benefits of LTCi like its received income tax free.
(Ref: IA Magazine, Cover story Feb 2012 issue) (What’s Keeping LTCi from Achieving its Full Potential?)
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