Affluent People Want LTCi (Long-Term Care Insurance) Badly

A new study by the Urban Institute dated March 29, 2011 (2100 M Street NW Washington, DC 20037) shows that the affluent are not affluent by accident.

Of all the excuses I hear, “I’ll just self-insure for LTC (long-term care)” ranks first. It definitely takes first place in both the most frequent and irrational excuse categories.

Of course, people of all income levels often give me this excuse…and many others. What this new survey demonstrates, however, is that affluent people (those making over $100,000/year) are more likely to buy LTCi. 

According to the survey, Americans aged 55 years and older with annual incomes over $100,000 are twice as likely own LTCI (19.3% versus 10.3%)

In my world, “I’ll just self-insure” is code for “I think I’ll take that diving vacation in Tahiti.  It’s much more fun than talking about responsible LTC planning now to avoid stress, strife and possible financial catastrophe later.” It could also be code for, “I can’t watch football games on the old 40″ HD TV anymore. I need a bigger, newer TV now!”

In short, earners of over $100,000/year are more likely to say, “I think I’ll take that diving trip to the Bahamas or the Florida Keys this year, not Tahiti. This way, I can still see magnificent sea creatures, relax, and have a great vacation.  And I can afford reasonable $1,000-3,000/year LTCi premiums at the same time.”