The news about stand-alone long-term care insurance (LTCI) may be gloomy, but many employers that offer retirement plans still offer LTCI benefits.
Analysts at Massachusetts Mutual Life Insurance Company (MassMutual) have reported that finding in a summary of results from a recent survey of 565 employers that offer 401(k) plans or other defined contribution retirement plans.
About 20 percent of the participating employers had fewer than 25 full-time employees, 31 percent had 25 to 99 employees, and 32 percent had 100 to 999 employees. Just 17 percent had 1,000 or more employees.
Roughly 79 percent of the plan sponsors had a plan advisor and 21 percent did not.
Analysts found that LTCI benefits penetration ranked near the bottom but was comparable to penetration for some other benefits that are in the news.
Fourteen percent of the participating employers with retirement plan advisors and 11 percent of the employers without advisors said they offer LTCI benefits.
Offering LTCI benefits was much more common than offering retiree health benefits. Just 6 percent of the retirement plan sponsors with advisors and 6 percent of the plan sponsors without advisors offer retiree health benefits.
LTCI benefits were much less common than health insurance, life insurance or dental benefits.
But, at the employers with retirement plan advisors, LTCI penetration was in shouting distance of cancer insurance, critical illness insurance, wellness program and employee assistance program (EAP) penetration.
At retirement plan sponsors with advisors, the reported penetration rates were 19 percent for EAPs, 19 percent for wellness programs, 18 percent for critical illness insurance and 16 percent for cancer insurance.
In another recent market research summary, an insurance market barometer, LIMRA reported that 52 percent of the consumers it surveyed said they need LTCI. Sixteen percent said they had some kind of LTCI.
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