Chronic Illness and Long Term Care Riders appear to be catching on with consumers. The Life Insurance Market and Research Association (LIMRA) reports that new premium for individual life combination products increased 14 percent from the previous year. Chronic Illness riders grew 38 percent to comprise 59 percent of the the total combination product market.
Long Term Care Riders also grew by 51 percent to make up 28 percent of the market. Who shows the most interest? Millennials! Those age 18 to 35 were extremely likely to buy a life insurance policy that includes one of the riders. The respondents said it was a more financially -savvy way to spend their money. Perhaps they learned from actually seeing the financial impact on their parents and grandparents?
The dreaded cost of long term care at home or in a nursing home can be catastrophic. Today, a private room in a nursing home can run as high as $55,00 to 72,000 annually in Chicago, Il according to Genworth Cost of Care Study. Home health care can be even more expensive, particularly if it is 24 hour care.