Study indicates consumer confidence gap in long-term care planning

An overwhelming majority of Americans interested in long-term care protection believe they will need long-term care at some point in their lives, but only 33% are confident in their plans. This is according to Leading Tomorrow: 2024 Long-Term Care Consumer Study, a recent survey commissioned by OneAmerica Financial and conducted by Hanover Research.

“Our focus in commissioning this study was to go deeper to understand how consumers feel and what they need,” said Dennis Martin, President, Individual Life & Financial Services. “With that understanding, we can deliver effective products and solutions, and perhaps most importantly, how to start productive conversations about long-term care in the marketplace. People have questions, and they continue to struggle to find the answers. We can help provide more certainty.”

The survey took an in-depth look at the needs, barriers and challenges consumers face in their long-term care journey. Key findings include:

• Consumers want peace of mind. More than half of consumers (52%) believe that a plan alleviates worry, yet only one-third are confident they have a plan in place that will meet their goals.
• Younger consumers are more confident. Younger consumers (ages 40 – 49) prioritize long-term care planning (75%) and are confident in their current plan (55%); by contrast, only 17% of older consumers (ages 60+) express confidence in their plan.
• Planning is personal. Having a family member who needed long-term care is a significant catalyst for creating a long-term care plan (88%) and buying long-term care protection (75%).
• More guidance is needed. Many survey respondents want support (44%) when selecting long-term care coverage, with 31% citing a lack of information about their options as a barrier to buying.

Consumers also want help evaluating the wide range of long-term care coverage choices. In particular, the youngest segment surveyed (ages 40 – 49) say they need “a lot” of support from family, friends, doctors and insurance professionals to quantify their needs, understand their options and target their research. Nearly a third of that group say they have not purchased long-term care insurance because there are too many choices to consider.

“Consumers want a voice in their care – where they will receive it, who will provide it and the quality they can expect. The best way to do that – and still protect their retirement nest egg and any legacy they want to leave – is to identify how they might pay for long-term care in the future,” said Jeff Levin, Vice President, Care Solutions for OneAmerica Financial.

“What’s clear from this research is that consumers need help when it comes to long-term care planning,” said Levin. “That’s where financial professionals can step in and help tailor long-term care protection strategies consumers can feel confident about.”

While price of coverage remains an important aspect of long-term care planning (72%), consumers rate the duration of the benefit period (84%), choice of care setting (80%) and an insurer’s reputation and strength (79%) as key components of the solution.

The full Leading Tomorrow: 2024 Long-Term Care Consumer Study and whitepaper can be viewed here.