Prudential Research Shows Most Workers Aren't Prepared for a Long Illness
NEWARK, N.J.--(BUSINESS WIRE)-- An aging American workforce is increasingly concerned about long-term care needs and the benefits available through employers, according to a report released by Prudential Financial, Inc. (NYSE: PRU).
But the Prudential study, Long Term Care Insurance, shows only a small number of employees understand the benefits of long-term care insurance, with only about one-quarter of workers planning to use insurance to fund long-term care expenses.
As Baby Boomers begin thinking about life after age 60, they grasp the implications of longer lives, post-retirement finances and lifestyles and nursing care costs, said Lori High, president of Prudential's Group Insurance business. As a result, workers are more aware of their own future long-term care needs and the impact on their retirement lifestyle.
Those with care-giving experience place greater value on employee benefits including long-term care insurance, because they've seen how inadequate insurance coverage can drain resources. Unfortunately, there remains a gap between this recognition and action to provide an adequate solution through the purchase of long-term care insurance, according to High.
Consider these findings:
- Three in 10 workers said they don't have a plan or don't expect to need long-term care services for them or their spouse.
- Among those that do have a plan, their expectations may be unrealistic given the rising costs of long-term care. The most common sources of funding cited for long-term care were 401(k) or retirement savings, followed by Medicare.
- The education gap is greater for women. Women tend to do more of the care giving and have more experience with care giving, yet they are less likely to have a plan for their own long-term care needs compared with men.
Prudential's Long Term Care Insurance
was conducted in conjunction with the company's sponsorship of Long Term Care Insurance Month. Held each November, Long Term Care Insurance Month is an industry-wide effort coordinated by the nonprofit American Association for Long-Term Care Insurance in response to growing concern about the large number of Americans who lack adequate long-term care insurance protection.
Americans recognize the importance of each dollar spent on employee benefits - both employers and their employees - and are looking for the best coverage their money can buy, High said.
Long Term Care Insurance, the third in a series of five reports, stems from the company's broad Study of Employee Benefits: 2009 and Beyond report fielded via the Internet during April and May of 2009. It consists of three distinct surveys: one among benefits plan sponsors, one among benefits plan participants, and one among employee benefits brokers and consultants. The surveys were conducted for Prudential by the Center for Strategy Research, Inc., a Boston-based, independent, market research firm. Click here for a copy of Long Term Care Insurance.
Prudential's Group Insurance business manufactures and distributes a full range of group life, long-term and short-term group disability, long-term care, and corporate and trust-owned life insurance in the U.S. to institutional clients primarily for use in connection with employee and membership benefits plans. Group Insurance also sells accidental death and dismemberment and other ancillary coverages and provides plan administrative services in connection with its insurance coverages.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $580 billion of assets under management as of June 30, 2009, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow and protect their wealth. The company's well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com/.
Group Insurance benefits are issued by The Prudential Insurance Company of America, Newark, NJ. Prudential and The Rock logo are registered service marks of The Prudential Insurance Company of America.
0164462-00001-00
Prudential Financial, Inc.
Laurita Warner, 973-802- 8614
Laurita.warner@prudential.com
Source: Prudential Financial, Inc.
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