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Adult Children and Their Aging Parents Not on Same
Page Concerning Long-Term Care, Says New Survey
July 19, 2004--Adult children may think they know
their parents wishes for long-term medical care, but they overestimate
their parents' planning. At the same time, the senior citizens seem to
think they have the proper health coverage plans in place, but are
confused as to what their insurance policies actually cover. These
disconnects regarding insurance can put unexpected and undue financial
burdens on both generations, a new survey reveals.
The "Aging in America: Planning for Long-Term Care"
survey - sponsored by Bankers Life and Casualty Company, an insurance
company focusing exclusively on the financial needs of seniors - reveals
that although families think they are talking about everything, they are
not discussing important financial issues that affect both generations.
The survey found that 42 percent of adult Americans
believe their parents have long-term care (LTC) insurance, while only 31
percent of senior Americans polled said that they currently have a
long-term care insurance policy. Alarmingly, even those numbers are
deceiving, considering that less than 10 percent of senior Americans
actually have LTC insurance, according to industry sales data.
"Most studies of late have focused on whether
individuals have enough long-term care protection for themselves, while
ignoring the role of the family in this decision," said Susan Morisato,
senior vice president and chief actuary, Bankers. "These findings raise
the important questions of emotional issues - whether adult children are
talking with their parents about plans for long-term care, and if older
Americans know what long-term care policies are."
For example, 43 percent of younger adults (aged
35-55) indicated they discuss everything with their parents and 54
percent of older adults (aged 56-80) believe they talk about everything
with their children. Yet 21 percent of younger adults indicated they do
not know the status of their parents' LTC plans and 42 percent assume
their parents do have some sort of long-term care plan in place.
Without appropriate financial planning, seniors or
their children will have to take responsibility for long-term care
costs. Nursing home costs have been conservatively estimated at $52,000
annually by the American Council of Life Insurance. Approximately 40
percent of adults over the age of 65 will need this care within their
lifetime. Yet, when Medicare won't cover these costs, many seniors are
faced with paying down their lifetime savings or turning to family for
assistance.
Survey Methodology
Survey results were obtained via random telephone
interviews with adults 56-80 years of age with at least one living child
and adults 35-55 years of age with at least one living parent. Half of
the respondents were male and half were female. Respondents were asked
general questions about long-term care insurance, parent/child
relationship, enjoyment/fears about aging and issues regarding terminal
illness.
"The purpose of this survey was to determine
consumer perceptions of insurance planning and the aging process in
general in order to help educate Americans on the importance of talking
about and planning for their financial futures," said Morisato. "We hope
that by waking people up to the need for long-term care planning, we
will be able to help more seniors protect their dignity and
independence, and leave the legacy they've built for their children
untarnished."
For more information on these survey results or on
LTC planning, contact a licensed financial professional in your area,
says the study sponsor.
What Bankers Life and Casualty Company Says
About Themselves
Established in 1879 and headquartered at the world
famous Merchandise Mart in downtown Chicago, Bankers Life and Casualty
Company focuses exclusively on the financial security needs of seniors.
The company offers a broad portfolio of health and life insurance and
retirement savings products designed especially for seniors. These
products are distributed through a national network of professionally
trained company agents. Additional information on the company can be
found at
http://www.bankerslife.com.
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