Shorting long-term care

Although most adults agree that the recession has necessitated new long-term financial plans, they continue to ignore long-term-care insurance.
MAR 08, 2012
Just 7% of Americans said that they have added LTC insurance to their financial plans since the recession began, despite feeling more vulnerable financially, according to a study conducted by Genworth Financial Inc. The insurer interviewed 1,073 adults 25 and older with annual income of at least $50,000 and found that less than half (38%) think that they one day will need long-term care. Statistics suggest, however, that most Americans will require some type of long-term care during their lifetime. Of those who did purchase a LTC policy, half did so less than five months before being affected by a life-altering event. “People are burying their heads in the sand when it comes to long-term care,” said Wendy Boglioli, national LTC spokeswoman for Genworth. “The fact of the matter is, 43% of people will need long-term care before the age of 65, and the cost of health care is only rising.” When it comes to discussing LTC options, 75% of the respondents said that they hadn't broached the topic over the last year with loved ones, much less a financial adviser. Even though many people think that they will have to take care of a friend or family member within the next five years, 70% said that they wouldn't know what to do if a loved one were to require immediate long-term care. Those who purchased LTC policies cited reaching a certain age (35%), adviser recommendations (20%) and knowing someone who experienced a sudden event (19%) as the top three reasons that they acquired LTC insurance. “Advisers have an incredible power to plan all avenues of their client's financial lives and can play a critical role in making sure people are educated and making the right decisions when it comes to long-term planning,” Ms. Boglioli said. “It's a conversation more advisers need to have.”

Latest News

Merrill veteran Jonathan Stogsdill joins Trinity Wealth Advisors in St. Louis
Merrill veteran Jonathan Stogsdill joins Trinity Wealth Advisors in St. Louis

A 20-year financial services veteran brings values-driven planning expertise to the St. Louis-based RIA.

SEC enforcement against public companies hits record low under Atkins
SEC enforcement against public companies hits record low under Atkins

New research shows a 71% plunge in actions in fiscal year 2026, with total settlements the lowest since the database began.

Edward Jones advisor launches SteadRock Private Wealth on LPL platform
Edward Jones advisor launches SteadRock Private Wealth on LPL platform

An Ohio-based advisor departs Edward Jones to build an independent firm focused on retirees and business owners.

SEC and state regulators tighten grip on fraud in fiscal 2026
SEC and state regulators tighten grip on fraud in fiscal 2026

Broker-dealer enforcement actions surged 66% as the SEC and state regulators cracked down on Ponzi schemes and digital asset fraud.

Marsh acquires Wilshire to deepen wealth advisor reach
Marsh acquires Wilshire to deepen wealth advisor reach

The deal adds $221 billion in AUM and bolsters Marsh's alternatives and model portfolio capabilities for advisors.

SPONSORED Best Practices for Engaging Women Around Alternatives

Growing wealth, evolving priorities, and untapped opportunities are reshaping how women approach long-term investing.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.