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Turning a blind eye to LTC insurance
February 5, 2007CHICAGO — If given the choice between planning a will and discussing long-term-care needs, 55% of respondents in a recent survey said they would rather plan a will.
Meanwhile, 53% said that going to a nursing home is worse than becoming bankrupt, and 50% said they considered it worse than dying.
Boston-based John Hancock Life Insurance Co. surveyed 1,000 people ages 21 to 75 last month via telephone.
Nearly everyone associates long-term care with nursing homes, said Laura Moore, president of the LTC division for John Hancock, a wholly owned subsidiary of Toronto-based Manulife Financial Corp. But she said that financial advisers need to let their clients know that LTC insurance is for much more than just nursing-home care.
In fact, Ms. Moore said that patients are urged to stay at home as long as possible.
“The greatest value might be helping people understand it’s not about nursing homes,” she said. “This is a product that can help you stay at home.”
Ms. Moore said that another stumbling block to planning for long-term care is that many people are superstitious and fear that if they plan for such an event, it will happen, but if they don’t plan for it, then their health will be fine.
She said that LTC insurance often is more affordable than people realize, especially if a baby boomer buys a policy at age 50, rather than waiting.