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Who Purchases Long Term Care Insurance?

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Studies show that well educated, high income individuals are more likely to purchase private long term care insurance when compared to other individuals. Going higher in terms of income or education seems to indicate that there is an increase in the odds that the consumer will be willing to purchase long term care insurance. In fact, it seems to increase the likelihood by 10 percent. Each increase in a consumer’s level of confidence in the ability to be able to find long term care insurance information is related to an 8 percent increase in the odds that the consumer is going to purchase private long term care insurance coverage.

Higher income consumers are also more likely to have looked for information about long term care insurance services in comparison to other consumers. They are likely to have created advance directives for their senior years. These advance directives explain how they want their loved ones and relatives to be able to handle their care if they are no longer able to handle these responsibilities for themselves due to old age or illness. Some of these findings have been published in a report on long term care planning from Langer Research Associates.

The information from the report is based on a recent telephone survey that contacted around 1019 adults, age 40 and older. The SCAN Foundation commissioned the survey in order to gain more insight into how social class, education, and income influence an investment in long term care insurance services. The analysts also examined topics such as how well the survey participants felt that they have or were able to prepare for long term care needs within the future. Many of the participants who own long term care insurance coverage said that they felt “very sure” that they had done a good job in planning for their long term care costs. The analysts also said that participants that have set aside their savings for long term care needs and searched for additional information on the aging experience feel good about their long term care planning efforts and goals.

This study provide a great amount of insight into the current situation regarding long term care insurance. Individuals who have been educated about long term care insurance understand the importance of it and want to focus themselves towards making the best choice for their future. Those who have a solid income also have more access to long term care insurance options because they are able to afford some of the various rates that are available. In fact, the common reason that many individuals who are within the middle class are hesitant to invest in long term care insurance coverage is because they are trying to reason with the costs in association with their budget. Likewise, there is still not a strong campaign to educate lower income individuals about long term care insurance, so there are many individuals who are still unaware of the significance that it can offer within their senior years.