First-hand experience with the challenges of financing long-term care for loved ones, as well as testimonials of hardship resulting from a long-term-care event, are the primary motivators for purchasing long-term-care insurance, but consumers are hungry for more education on this type of coverage, according to recent research from Mutual of Omaha.
Mutual has published results from a recent two-fold study aimed at uncovering the primary decision-making factors and the emotions that motivate consumers to purchase LTCI. By publishing the results of this research, the company hopes to assist insurance and financial representatives in their efforts to identify customers who would benefit the most from the products they offer and appeal to them in meaningful ways.
The first phase of the research was conducted to understand the decision-making process (the minds) and develop a profile of those who purchased LTCI. Mutual of Omaha commissioned the MSR Group to conduct a telephone survey with its own policyholders, as well as with those who own policies from other companies.
The second phase of the research explored the attitudes and emotions (the hearts) surrounding the decision-making process. For this, Mutual of Omaha commissioned LIMRA to conduct a series of focus groups that included LTCI buyers and consumers who matched the profile of likely buyers.
Some key findings indicate that the typical LTCI buyer is:
- Female, age 55-64
- Married with adult children
- A “planner” who is interested in financial issues and owns life insurance and other conservative investment products
- Exposed to LTC issues through a friend or family member
- Moved by testimonials of hardship resulting from an LTC event
- Seeking education and guidance
The published survey takes the results a step further to help producers understand what the information can mean for their businesses. Producers may obtain a copy of the results by contacting their marketer or logging on to the company’s Sales Professional Access site at www.mutualofomaha.com/broker.
By Ayo Mseka