In the 2016 Insurance Barometer, nearly 6 in 10 consumers said paying for long-term care services was a financial concern, and 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.
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.
LIMRA has tracked sales of combination products since 2007 and has found steady growth in new premium and new policies. In 2015, new premium 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.
In terms of consumer awareness, the Barometer study found that 60 percent of consumers said they understand the product with the highest awareness among Millennials at 65 percent.