Millennials like to plan ahead, so it should come as no surprise that they want long-term care insurance.
When it comes to selling insurance to millennials, agents typically center their sales pitch on products suited to their particular lifestyle. While that’s often renters insurance for the urban dwellers, auto insurance for those with cars of their own, or homeowners and life insurance if they’ve started their family, agents shouldn’t stop there.
Indeed, surprising research shows that, as a group, millennials are interested in a type of coverage rarely associated with their generation: long-term care insurance (LTCI). This somewhat surprising inclination was uncovered in a recent survey by Transamerica Center for Retirement Studies.
When the center canvassed more than 6,000 American workers over the age of 18 on desired workplace benefits, 77% of millennials ranked LTCI as “very/somewhat” important to them — up from 64% in the previous year’s poll. In fact, millennials favored LTCI more than Baby Boomers, with roughly 70% of older workers putting LTCI high on their list.
Given these findings, agents shouldn’t hesitate to discuss LTCI with millennial prospects and clients. After all, it’s a product they obviously want to know more about, and it’s never too early to plan ahead — whatever the age of your clients. To get started, however, it may be helpful for agents to understand more about these surprising numbers.
Not So Surprising
Back in 2015, Genworth did a survey on millennial attitudes toward aging and long-term care. Not only did the survey find that millennials were keenly aware of the importance of having resources to fund unexpected medical expenses associated with aging, nearly half thought their parents and loved ones failed to adequately prepare for extensive care as they grew older.
Millennials don’t want to make those same mistakes. More than half of those polled in the Genworth study said they intend to make arrangements for their long-term care needs, which means that agents selling LTCI policies may have an untapped market on their hands.
How to Talk to Millennials About LTCI
For agents unsure of how to broach the topic of LTCI with such a young generation, it’s important to plan ahead for those conversations. With these key value propositions, you can make the case for millennials purchasing the right policy for them.
Relate it to Personal Experience
As the Genworth study highlights, millennials have seen firsthand the financial and emotional strain close relatives experience as they deal with age-related chronic health problems. They’re well aware of the issues they are likely to face in their 60s, 70s, and beyond — a time when 70% of Americans require some type of long-term care. Accordingly, emphasize that a LTCI policy lifts that burden by ensuring they have the funds to pay for in-home care — or a nursing home alternative — should they require it.
Long-Term Care Costs Will Only Get More Expensive
Genworth’s 2017 Cost of Care Survey reported a 4% uptick in the median cost of a semi-private nursing home room — up to $7,148 a month. At-home care also increased, climbing 6.17% to $21.50 an hour. Additionally, assisted-living facilities charge, on average, $3,750 a month, a 3.36% hike.
These costs will only rise as millennials age. When you’re talking with clients, emphasize that a LTCI policy covers those expenses so they don’t have to worry about soaring long-term care costs. With prices on the rise, it’s better to start investing sooner rather than later.
Lower Premiums By Buying Now
Your millennial clients may think that LTCI premiums are too high for them. However, that’s not the case for every policyholder. Younger buyers pay lower premiums than an older applicant, and they stand a better chance of getting approved for coverage. Encourage clients and prospects to purchase an LTCI policy now to lock in affordable rates.
Insurance agents should be prepared to make the most of millennials’ appreciation for the benefits of long-term care insurance. With an LTCI policy in hand, your clients can prepare for their financial future with peace of mind.