Less than 40 percent of wealthy investors own long-term care insurance, and many of them believe their other savings programs will take care of their long-term care financial needs.
A Spectrem study of wealthy investors reveals that only 37 percent of Ultra High Net Worth investors with a net worth of between $5 million and $25 million Not Including Primary Residence own long-term care insurance. That percentage drops to 33 percent among Millionaire investors with a net worth between $1 million and $5 million NIPR, and down to 24 percent among Mass Affluent investors with a net worth between $100,000 and $1 million.
More than 40 percent of UHNW investors without long-term care insurance say they are saving for long-term care through other savings vehicles. Twenty-five percent say they are not purchasing long-term care insurance because it is too expensive, while 11 percent said their family history of good health indicates they might not need the insurance.
Seven percent of UHNW investors indicate they have other pressing financial needs that kept them from buying long-term care insurance.
Professionals are more likely to have long-term care insurance than investors from other occupational fields. Forty-seven percent of professionals have long-term care insurance, while only 35 percent of senior corporate executives and 34 percent of business owners do. Only 32 percent of managers have long-term care insurance.
Among the 63 percent of UHNW investors that don’t have long-term care insurance, 69 percent said they are either unlikely or very unlikely to purchase such insurance in the future. That percentage rises to 83 percent of UHNW investors aged 66 and older. Only 7 percent of UHNW investors without long-term care insurance intend to purchase such insurance in the future.
Among the youngest UHNW investors aged 44 or younger, 32 percent said they were likely or very likely to purchase long-term care insurance in the future.
Information about long-term care insurance came to investors via a professional life insurance agent or provider (32 percent), the primary financial advisor (30 percent) or family and friends (20 percent).