Depending on who you talk to, the Millennial generation is those born from the late 1970s to the late 1990s. Millennials grew up with technology and were the creators of Google, Facebook, and Instagram. So what do these tech savvy consumers need to think about when it comes to Long Term Care Insurance?
First, they know they are primarily responsible for their financial future. This generation saw their parents, mostly Baby Boomers, move from a defined pension retirement to a 401k retirement plan. They also saw the culture change from finding a good company to work at for 30+ years and retire with a pension, to changing jobs every 3-6 years and taking their 401k with them. This new look at the financial world is what makes them better prepared to accept the fact that government and employers are not going to be their financial provider in retirement. It means they are more open to planning for the future when the time arises for things like long term care.
It also means they demand information when they want it and how they want it. For example, the most watched TV show ever was M.A.S.H. More than 105 million people watched this show. Now the most popular show is The Big Bang Theory with 21.3 million viewers. Why? When M.A.S.H was on, there were only 4-6 channels. The population simply had limited choices. Today, there are hundreds of TV channels that serve niche markets from food to hockey. Today’s consumers have the choice and therefore expect to only find information that they want to find. This was one of the primary drivers for creating LTC Consumer; to give unbiased independent information on Long Term Care so consumers could educate themselves rather than being forced to speak with a sales agent.
So when should a Millennial start considering Long Term Care? They should typically wait to look at the policy no sooner than the age of 40 and no later than the age of 55. Between the age of 40 and 55 the rise in cost is minimal. Also, people generally have a lower risk of experiencing a chronic health condition that may prevent them from being medically eligible until their late 50’s. They should also have their other financial priorities like housing, retirement plan, emergency savings, etc. well established before considering a long term care plan.
Just like the generations before them, Millennials are changing the world. Fortunately for them, they are better equipped with access to information and the knowledge that their retirement plan can be as strong as their social network with a little planning.
LTC Consumer is an independent, free online service to help consumers understand what long term care insurance is, how it works, and how to evaluate coverage options. Our mission is to provide an educational, no-pressure resource for learning about long term care planning, with the opportunity to speak with specialists who can help them.