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January 12, 2003 at 07:00 PM
LTC Insurance Is Attractive To Women For Many Reasons
By
Women represent one of the most attractive markets for long term care insurance because they have a longer life span than men. On average, women live seven years longer than men, according to the Social Security Administration.
When you factor in that many women are undersaved for retirement, the financial risks associated with a potential long term care stay can be particularly great. Women make up almost 75% of the residents in a nursing home, according to The Elder Law Handbook by Peter J. Strauss & Nancy M. Lederman.
With the costs of nursing and in-home care rising rapidly, its important for everyone to consider the financial impact of such care. However, it should be particularly of concern to women.
There are several opportunities to position LTC insurance to women. First, it should be noted that women are often financially strained during their retirement years.
Since women generally earn less then men, and are more likely to have interrupted their careers to raise their families, their personal savings, pensions and Social Security benefits are generally lower than those of their male counterparts. And, given their longer life expectancy, they have to make those dollars last longer.
Many women are faced with making financial decisions alone for many years. So, it would be logical for financial advisors to incorporate the LTC message into the retirement planning discussions they have with women.
LTC insurance is one way women can help protect their retirement savings.
A second opportunity exists for marketing LTC insurance to women for their parents. Women historically have been the caregivers in their families. As more women establish careers, often in areas away from their parents, there is growing awareness that someone else will need to assume the caregiver role. Long term care insurance can be a solution here.
By buying a LTC policy for their parents, women can be confident that quality care will be available even if they cannot physically provide it.
Finally, there is an opportunity with women who own their own businesses. Effective Jan. 1, 2003, self-employed people, LLCs, S-Corporations and Partnerships may deduct a portion of premiums paid for a qualified long term care policy, and C-Corporations may deduct 100% of them.
In addition, there are no Employee Retirement Income Security Act restrictions on whom the policies cover. Many insurance companies now offer LTC policies that are structured with limited pay options so that the policy can be fully paid for prior to retirement. Thus, long term care insurance also can be positioned to women business owners as a discriminatory employee benefit.
