LTC Consumer Study Part 3: Key Influencers on LTC Purchase Decision

  • Originally published August 2, 2012 , last updated January 11, 2016
LTC Consumer Study Part 3: Key Influencers on LTC Purchase Decision

In Part 1 of our LTC consumer study, we discussed the many different demographics of people who purchase LTC according to a study done by Mutual of Omaha. In Part 2 we looked at the different reasons why they purchased LTC according to this same study. In Part 3 we will take look at the key influencers that impacted their decision to purchase LTC.

Where did you first learn about long-term care insurance?

1. 34.7%, family or friends
2. 17.6%, information from employer
3. 8.9%, financial advisor

This shows that there is huge opportunity for agents to reach out to current clients and discuss LTC with them. If you already have them in front of you why not let them know the importance of adding LTC to their retirement plan. You as an agent have the resources and information to this and if people understand the importance of LTC they will be more likely to purchase it.

Tell me what your education process was while you were considering purchasing long-term care insurance?

1. 70%, discussed with family or friends
2. 69%, read brochures
3. 65.5%, discuss with insurance agent or broker

This suggest that once people hear about LTC they become more interested in it and want to find out as much information as possible. They know it’s important and just need that last bit of information to help them in the final decision process.

In your decision to purchase long-term care insurance from the company you chose, how much of a consideration was the financial strength of the company?

1. 48.6%, major consideration

The financial strength of a company is very important in the decision to purchase LTC with about half saying it is a major consideration. This could be because LTC is a huge financial commitment and people want to make sure the company is stable and just as committed to their LTC plan as they are themselves.

As you can see from these findings, people are they’re looking for information, whether it’s with their family and friends or reaching out to agents for information. This is a huge opportunity for you to grow your LTC business whether it’s with existing clients or reaching out to new clients and educating them on the importance of LTC.

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