Management Consulting
Aon
Full Credential Description
The case study highlights the challenges faced by employees in the United States regarding long-term care (LTC) as the population ages and costs rise. With the average annual cost of a nursing home exceeding $100,000, many employees are concerned about how they will finance potential future care, especially as they may be responsible for their aging parents or relatives. The situation is exacerbated by a shortage of healthcare workers, as older nurses and aides retire, and the limited resources available to the smaller number of children in the Baby Boomer generation. To address these issues, employers can offer life insurance policies that include long-term care coverage. This hybrid product allows employees to use a portion of the death benefit for LTC costs if needed, while still providing a death benefit if care is not required. Employees can typically draw around 4% of the policy's face value per month for a duration of 25 to 75 months once they qualify. This solution not only provides financial support for employees caring for elderly family members but also enhances their emotional and financial wellbeing, ultimately aiding in employee retention. The implementation of such policies requires effective communication and support from employers to ensure employees understand and can enroll in the program. Educational resources, webinars, and benefit counseling are essential to help employees make informed decisions based on their financial situations. By offering life insurance with LTC coverage, employers can significantly improve the financial wellbeing of their workforce, addressing a critical need that is increasingly important as the population ages.