FOR IMMEDIATE RELEASE
Washington, DC, May 27, 2015 — “Based on the principle of supply and demand, a student of economics would likely believe that with the aging American population, long-term care insurance packages should be flying off the shelf,” explains Dave Beck, a partner and insurance expert at the financial services firm Egan, Berger and Weiner LLC, based in Northern Virginia.
However, Beck notes, that according to the National Bureau of Economic Research, only 10 percent of the elderly have private long-term care insurance.
“The harsh reality is that there exists a two in three chance of at least one member of a couple going to a nursing home,” Beck insists. “Based on these statistics, you might think that demand for insurance to cover this risk would be strong, but you would be wrong.”
Consumer reluctance to purchase long-term care insurance can stem from a variety of reasons. High-premium rates, perceived cost-to-benefit analysis and the belief that the long-term care insurance policy will go unused are just a few of the arguments individuals.
“Maybe they don’t fully understand the consequences — yet, for a couple, there is a 91 percent probability that one of them will need some form of long-term care services and a 64 percent chance that one of them will enter a nursing home.”
However, there is hope.
In fact, Beck says that a host of new options have cropped up designed to match the needs of people in many different types of situations.
Still, some questions remain. Will these new policies resonate with consumers? Will the insurance companies be successful in helping to address the broad challenges being created by an aging population?
“The problems these policies are designed to address won’t fix themselves,” said Beck. “That’s up to individuals to decide — for themselves and their families.”
About Egan, Berger & Weiner, LLC
Egan, Berger & Weiner, LLC is an independent financial services firm based in Northern Virginia. Its associates have decades of experience in helping our clients plan ahead for retirement.
The mission is simple: To help clients accomplish their dreams by skillfully navigating them through life’s myriad financial decisions. Learn more here.