New Hampshire Long-Term Care (LTC) insurance costs, according the 2010 Genworth Cost of Care Survey, exceed the national averages for the following categories: Home Health Aid Services, Assisted Living, and Nursing Homes. New Hampshire ranks 5th nationally for home care service costs. The only area where New Hampshire fell in line with the national average, according to the survey, was Adult Day Health Care.
This high cost has already had an impact on the state’s Medicare budget, and this impact is only expected to grow in the near term. Currently, 260,000 Granite Staters are over the age of 65 with the number projected to swell to over 420,000 over the next ten years.
Long-term care (LTC) insurance is a difficult product to market. Unlike life insurance, LTC insurance is still a comparatively new product in the market. Traditionally, LTC was provided by family members until the 1980s when the first Long Term Care products came to market. The benefits of LTC insurance are clear: They provide the ability to pay for quality care without creating a large payment burden. However, although LTC insurance is a quality product and provides value to customers, it has seen a decline in interest caused in part by negative publicity, congressional inquiries, and a reduction in providers.
So what does this mean for agents and brokers doing business in New Hampshire? Clearly, if costs and the number of seniors continue to rise, there will be an increased need for high-quality LTC insurance products. While these products have seen a decline in popularity, the need still very clearly exists. As agents and brokers, it is incumbent that the need be very clearly explained to families and the value of these products clearly expressed.
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