Q. I want to revise my client presentation. What significant statistics should I include and what benefits are other agents recommending?
A. A great best way to start the new year is to update the information we tell prospects. To accomplish that, this column is divided into two parts.
First is a list of recent facts that we should either mention during the presentation or use when appropriate.
Second is information on the benefits that most agents are recommending. Plus, I will be providing more helpful facts in my next column.
PART 1 – Care facts
- About 70 percent of Americans over age 65 will require some type of long-term care services during their lifetime.1 (So the question becomes when and not if!)
- 3.9 years – Average length of long-term care claim lasting longer than one year.2
- 42 percent of the 13 million people receiving long-term care services are between the ages of 18 and 64.3
- Four to eight years – Average life expectancy after Alzheimer’s diagnosis after age 65.4
- Alzheimer’s is leading cause of claim from age 65. Cancer is leading cause of claim below age 65.5
- Where new claims began in 20125:
- 51 percent – Home care;
- 18.5 percent – Assisted living;
- 30.5 percent – Nursing home. (My conclusion – Almost 70 percent of claimants receive benefits outside of a nursing home.)
- Age 79 – Average attained age at commencement of claim.5
- Average length of stay5:
- Assisted living facility claims – 958 days (2.6 years).
- Nursing home and home health care – about 700 days (1.9 years).
- For the three-year benefit period, only eight in 100 claimants exhausted their policies.5
- New claims that opened in 2012 by sex5:
- 67 percent – Female.
- 33 percent – Male.
- Statistics from the 3in4 Need More Campaign6 :
- 74 percent of consumers ages 55 to 65 said they are concerned about needing long-term care.6
- 77 percent of Americans age 30 to 65 think they should know more about long-term care insurance than they currently do.6
PART 2 – Benefits Being Recommended5
- 2012 sales by benefit period:
- 3 years – 31.2 percent.
- 4 years – 27 percent.
- 5 years – 17.4 percent.
- 2012 sales by daily benefit amount:
- 34 percent – $100 to $149.
- 35.2 percent – $150 to $199.
- 14.2 percent – $200 to $249.
- Type of inflation protection:
- 42 percent – 5 percent compound for life.
- 30 percent – 3 percent compound.
- 9 percent - 5 percent simple.
- The Urban Institute, May 5, 2006, & The Congressional Research Service, June 28, 2004
- Claims data for Genworth Life Insurance Company and affiliates – December 1974 – December 31, 2012
- Georgetown University Long-Term Care Financing Project. “Long-Term Care Financing Policy Options for the Future,” June 2007.
- 2012 Alzheimer’s Disease Facts and Figures, Alzheimer’s Association, March 2012
- American Association for Long-Term Care Insurance, 2014 LTCi Sourcebook
- 2010 Prudential Long-Term Care Consumer Awareness & Attitudes Study
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