Somewhere in the cacophony of political talking heads I keep hearing the proffered wisdom that “age is only a number.” Which is of course perfectly okay as long as it’s not your number that is up… My suspicion however is that this antiquated gem of cultural wisdom is however being offered as a rationalization to maintain the status quo. Clearly there are many voices on both sides of this far too often called upon chronic social euphemism.
The success or failure of directly addressing the needs of the long term care conundrum has always been just a number. Therefore, in no particular order of significance:
- When is the optimum age to acquire protection? At what young age do I simply just postpone an inevitable conversation? At which age mile marker do I stop asking if my client is ready now? At what age do I simply give up the quest per potential client?
- What is the age at which age related disability will become your number one financial and emotional consideration ?
- What is the number of days that I can personally pay for care before I can depend on government dependence? How many days can my savings hold if I need 24 hour care at home?
- What is the number of discretionary dollars I can commit for long term care premium or savings before my finances implode?
- What is the number and cost of claims risk that will actually await me in 20 or 30 years of inflation? “Where is your million?”
Yes, these are only numbers and I need to stop here as by now you should have had the thought that this list is infinite and this is a finite column.
I have never been a fan of simply hurling statistics at our wall of denial. It is after all the composite generational numbers of the age of birth that may best define statistical predispositions. For almost 30 years I have walked to the front of the room to tell our story. I inevitably began with some version of Paul Revere’s ride: “The Boomers are coming! The Boomers are coming!” This frequent observation now reminds me of the Stephen Sondheim ending of the song Send In The Clowns:
Don’t you love farce?
My fault, I fear
I thought that you’d want what I want
Sorry, my dear
But where are the clowns?
Quick send in the clowns
Don’t bother they’re here
Those born in the mid-20th century between 1946 and 1964 have, during the length of tax qualified LTCI, been our primary target market.
Boomer numbers peaked in 1999 and remained the largest adult population until 2019. Most notably for retirement planners who include long term care risk in their practice, the number turning 65 has grown to 12,000 per day and those hitting 65 peaks next year. There is not enough room in this column to adequately document the retirement shortfalls of all Americans. And I don’t think anyone knows the status of the problem better than those long term care insurance promotion veterans who fought and continue to struggle to do all they can to blunt and hopefully soften the blow of potentially catastrophic risk.
If age is just a number, perhaps we simply need to move on to a different set of numbers. Boomers are now on the precipice of those needing care. They and we may have crossed a line in the insurance sand where assets and income are frozen and progressive aging disabilities severely restrict insurance planning options. Simply meaning that, for us, underwriting resistance is now dug in like Russian trenches in eastern Ukraine. I will not admit defeat nor certainly stunning success. We have placed billions of insurance dollars ahead of the claims that will certainly push through our collective defenses.
Perhaps it is time to fall back and regroup our attack on a different statistical cohort. Millennials born between 1982 and 2000 are, as of July 1, 2019, the biggest age group in American history. They are primarily the children of Boomers currently wading into the necessity of additional care. As of July 1, 2019, they are the largest generation in our “currently at work” force, just beginning to turn 40.
As you might expect, much has been researched about their buying predispositions. They still believe in a bright future. Technology is their friend, not a daily adversary. The recession in 2008 left indelible marks on their psyche. Their fear of a financial catastrophe is more than of the Great Depression. They are known as the “Me” generation although they live more with parents than roommates. They have a more communal nature than their parents and thrive in a network of social media platforms. They currently command a trillion dollars of buying power and four out of 10 are willing to buy a product that supports a cause.
Based on our LTCI marketing limitations of the last 25 years, how could we not recognize a fantastic potential sales opportunity? If you carefully reread the last paragraph, how could we even imagine a more fertile ground for future sales success?
Other than that, I have no opinion on the subject.
