What We Have Learned From COVID

Capriciousness: “The quality of changing mood or behavior suddenly and unexpectedly.” Two takeaways from the pandemic are that we are suddenly more aware that early unexpected deaths do occur, and under no circumstance do we want to end up in a nursing home.

By 2034 older Americans will outnumber children. Within a dozen years every American will either be a caregiver or need one themselves.

Thanks to COVID nearly 50% of Millennials say that they are now interested in life insurance. Overall, one-third of all consumers are now more likely to buy life insurance.

The old saying of killing two birds with one stone comes to mind. How many people know that they can buy a life insurance policy that includes some form of Long-Term Care insurance (LTCI) as well? Commonly referred to as hybrid life insurance policies, a portion of the death benefit can be used to pay for long term care. The cost of the long-term care is deducted from the death benefit.

COVID has opened our eyes to the possibility of early, unprepared and tragic mortality. We now have a better understanding of the fragility of inherent financial security, and we also see the value of staying at home as opposed to institutional care.

And speaking of staying at home for long term care, it would seem that caregiver supervision and Skype/Zoom would go hand in hand. I suspect that this is where things are heading. Technology will lower costs of care, which in turn will lower costs for insurance. Lowering the cost of Long-Term Care insurance is key to insuring more of the middle class. The elderly wave is coming, and we must prepare today while reasonably healthy.