Women today fuel a great part of our economy, balancing their professional careers, family, and personal well-being. Often taking on the caregiver role, they tend to neglect their own potential need for long term care. Therefore, they remain a largely underinsured market when it comes to long term care insurance even though they may be in need of it the most.
Individuals today live longer, which means that many of us will need long term care at one point in our lives. However, one fact to consider is that women tend to live longer than men do — an estimated six more years, according to a recent AARP study. Also, even though women have made great strides, they tend to have lower incomes than men do. According to the U.S. Department of Labor, on average, women earn 76 cents for every $1 that men earn.
Not surprisingly, almost 72 percent of nursing home residents are women. Female baby boomers find themselves particularly exposed, as they are the first generation in U.S. history to have a disproportionately larger percentage of single women. One study shows that women account for more than 70 percent of older adults living in poverty. The cost of and access to long term care then becomes a growing issue for this generation and future generations of women.
Women in particular should pay close attention to their long term care needs, particularly within the context of their financial goals. As a long term care specialist, you should always focus on what is best for your client and her financial goals, not your financial goals for your client.
What women want
For some, the mention of long term care immediately conjures up negative images. However, as we know, long term care is not just about nursing home care. For women, as caregivers themselves, it takes a little more assurance that long term care insurance does not ensure their place in a nursing home, but that it ensures that their choice of care can be carried out should they need it. In essence, LTCI helps provide a certain level of independence for your client and her family.
A widow once came to me after her husband, who had recently passed away, left her a substantial portion of his assets. At the time, she was well into her 70s, living alone, and in good health. Even though her husband needed care during his illness, the widow never considered purchasing long term care insurance because she didn't think it was necessary. What I soon realized was that she, like so many others, did not understand what long term care insurance provided. She immediately thought that I was trying to sell her nursing home care.
It took some time and education, but she did purchase a policy. She realized that she would be insuring her own independence and a legacy for her children. A few short years later, she began losing her sight and found she could no longer care for herself. She moved in with her daughter, who now cares for her with the assistance of a home aide.
For producers, it may take many positive “first impressions” to build a solid foundation with a female client. There needs to be an understanding, patience, and commitment to the needs and desires of your clients — the intangibles, so to speak. It is not based on gender, as most women would work with either men or women. But for women in particular, a business relationship extends beyond closing a deal or making a sale. It is about building a level of trust and understanding over a period of time.
As long term care specialists, we need to proactively approach, inform, and educate women about their long term care needs. As professionals, we must ask ourselves how much of an impact we are truly making in the lives of the women we meet. As advocates for our clients, our profession, and our industry, we must ensure that our caregivers — mothers, sisters, and aunts — are cared for in their later years.
Personal Independence
Every day, a woman takes on the challenge of balancing home and work life and juggling professional and familial stress while carving out personal goals and dreams. They are a growing force in our economy; take the following statistics as an example.
• Women own 9 million small businesses and hold about 47 percent of all professional positions.
• According to the National Association of Realtors, single women make up about 21 percent of the homebuyers market.
• From 1997 to 2002, female-owned business grew 20 percent, twice the national average for all businesses.
• Women-owned business generated more than $940 billion in revenue in 2002.
Bernadette Krueger, ChFC, LUTCF, CLTC, is a financial planner with Krueger Financial Group, an office of MetLife. Ms. Krueger can be reached at bkrueger@metlife.com or 866-811-7133.