Purpose of Presentation

2. Purpose of Presentation • Track and compare product purchase trends between 1990 and 2010. • Compare attitudes and characteristics of current and past buyers and non-buyers as well as a sample of individuals from the general population age 50+. • Obtain view of consumer attitudes regarding the role of the public and private sectors in LTC financing. • Provide information about how to approach market barriers.

3. Participating Companies Nine companies, representing the vast majority of total individual sales and diverse market segments in 2010-2011, contributed to the study • Bankers Life and Casualty • Genworth Financial • John Hancock • Long-Term Care Partners • MedAmerica • Metropolitan Life • Mutual of Omaha • Northwestern Mutual • Prudential

4. Sample Size • Buyers (paid a premium and were beyond free look) • 1,493 returned surveys • Non-Buyers (met agent and chose not to buy or returned in free look period) • 408 returned surveys • General Elders (random sample age 50+) • 500 completed interviews • Individual Policies Analyzed • 8099 policies

5. What are Key Trends in Socio-Demographic Characteristics of Buyers in the Individual Market?

6. Socio-Demographic Characteristics of Buyers

7. Socio-Demographic Differences Between Buyers, Non-Buyers and General Population Average Age: Buyers 59 years; Non-Buyers 67 years; General Population 64 years

8. Perceptions About Who Would Pay for Long-Term Care

9. Believe That Risk for Needing Care is Greater than 50%

10. What Are People Buying and How Have Trends Changed Over Time?

11. Summary of Characteristics of Policies

12. Long-Term Care Insurance Premiums in 2010 Average Premiums in 2010: $2268

13. Why Do People Choose to Buy or Not Buy LTC Insurance?

14. Most Important Reason for Individual LTC Insurance Purchase

15. Reasons Why Buyers Bought Policies Now

16. Most Important Factors Leading Current Non-Buyers to Consider Buying a Policy

17. Most Cited Very Important Reason for Individual Not Buying Insurance

18. Non-Buyers Plans for Purchasing LTC Insurance

19. What Goes Into the Consideration of Specific Policy Purchase?

20. Factors Important to Specific Purchase Decision

21. Attitudes About Role of Government and Private Financing of Long-Term Care

22. Attitudes About Government and Roles in LTC Financing Among the General Population Age 50+

23. Single Most Important Action Government Should Take in Area of LTC Financing

24. Awareness Among Individuals Age 50+ of Long-Term Care Insurance

25. Knowledge about Partnership Policies Among the General Population Age 50+

26. Conclusions • LTC buyer is getting younger. • Policies continue to provide comprehensive coverage. • The reasons and factors why people bought or did not buy policies remain fairly stable over the past five years, with a somewhat greater emphasis on protecting living standards. • General attitudes toward LTC insurance are improving and most people believe that the federal role should be to encourage purchase of the insurance. • Government action designed to lower the net cost of insurance /services is what is most desired by the public.

27. Questions