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.

Source: Business Wire 06-09-08