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Many Americans lack understanding of benefits, value
Chicago (June 9, 2008)-No one likes to think about relying on long-term care. But the reality is that any person could fall victim to a disability or need chronic care because of aging. New research from Mintel suggests that many Americans are not prepared for these possibilities.
In a new report, Mintel found that less than 60% of adults are familiar with long-term care insurance. Furthermore, three-quarters (74%) do not currently have any type of long-term care coverage. Almost one in five state they don't know why they haven't purchased a long-term care policy or that they "don't know anything about it."
"Overall, Americans are not educated about long-term care insurance policies and their benefits," comments Susan Menke, senior analyst at Mintel. "Many people either don't want to confront the issue of aging or they view long-term care insurance as too expensive and unnecessary." Mintel's consumer survey found that cost is the primary reason people don't purchase long-term care insurance. Forty-two percent of survey respondents said they haven't purchased it because "it is too expensive." Other common deterrents include the belief they won't ever need long-term care (17%) or that its costs will be covered by Medicare or Medicaid (15%). Finally, 13% of respondents say they would like to purchase it but they just haven't gotten around to it yet.
"Insurers need to educate the public about long-term care insurance's value," recommends Menke. "Over two-thirds of the people we surveyed who had long-term care insurance purchased policies because they didn't want to burden others with their care. This is a powerful motivation that insurers can emphasize when discussing long-term care insurance's benefits."
Menke looks to direct mail, popular in the long-term care insurance industry, as an effective way to educate consumers. Mintel Comperemedia data shows that in the first six months of 2007, estimated mail volume for long-term care insurance exceeded 15 million pieces per month. "With its time-trusted format, direct mail can be a very effective vehicle for informational guides, cost breakdowns and customized advice explaining long-term care insurance," states Menke
Mintel Comperemedia provides competitive intelligence for businesses looking to advance and improve their direct marketing strategy. Tracking direct marketing (including mail, email and print advertising) targeted at consumers, small businesses and insurance agents, Mintel Comperemedia offers a unique perspective on everything from banking trends to insurance trends to credit card statistics. For more than 38 years, Mintel has provided insight into key worldwide trends, leading the industry for consumer, product and media intelligence.
Joanna Peot
Public Relations Executive
312-628-7946
jpeot@mintel.com