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Life Health > Life Insurance > Term Insurance

LTCI Watch: Generations

By Allison Bell

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Financial Finesse Inc. has accidentally published a survey report that shows why the most practical way to improve U.S. workers’ long-term care (LTC) planning might be to get more employers to offer employees at least some help with paying for long-term care insurance (LTCI) programs.

Financial Finesse sells telephone- and Web-based financial education services to the kinds of employers that offer great benefits.

It recently published an analysis of the results from brief interviews with the workers who use the educational services.

The idea was to compare and contrast the financial wellness of workers in the Millennial, Generation X, Late Boomer and Early Boomer age groups.

One finding: Because a lot of members of Generation X have young children, and relatively recently purchased homes with mortgages that are still underwater, those workers’ finances are, generally, lousy.

A more obvious conclusion — which Financial Finesse did not include in its commentary — is that workers tend to do a lot better in areas in which employers are actively involved.

Most of the workers included said they contribute to 401(k) plans or other employer-sponsored defined contribution programs, and a large majority said they have life insurance and long-term disability insurance.

But Financial Finesse didn’t even bother to ask the Millennials or Gen X workers about long-term care insurance. In the Late Boomer age group, just 17 percent said they had coverage. Even in the Early Boomer age group — workers who are quickly aging out of having much of a chance to qualify to buy a private LTCI policy — only 22 percent said they had LTCI coverage.

The moral may be that, once interest rates rise and insurers once again have the capacity to write more LTCI business, they need to quickly revive efforts to get employers interested in LTCI benefits programs.

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