Better together: How a legal plan complements long-term care

Employers are facing an emerging real-world crisis that is drastically affecting their workforce: Many of today's workers aren't planning for their long-term care needs, nor are they prepared for the skyrocketing costs, as illustrated by the 80% percent of older Americans who are reported to lack the financial resources to cover long-term care costs. 

The growing caregiving challenge 
With more than one in five Americans serving as caregivers and the majority (61%) caring for an adult relative or friend while working, this growing need for senior care is at the forefront of employers' concerns. In fact, 43% of employers cite senior care benefits as the main benefit they're prioritizing this year. Yet the need for long-term care is apparently not on employees' minds as much, as 63% of consumers who have received long-term care did not consider the need for it beforehand. 

The heart of the matter is this: Many of today's employees are having to address the caregiving needs of their aging parents or grandparents who didn't have a solid plan in place for their changing medical, financial and legal situations. Yet as these employees themselves age, their children — who will soon join the workforce — may face the same caregiving reality for their parents or grandparents. This exhausting cycle will continue unless we help employees become better prepared for long-term care needs and reduce the caregiving burden they pass on to their children.

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Taking a new look at long-term care benefits
Stand-alone long-term care (LTC) plans, which have historically provided solid coverage, are largely a benefit from the past, primarily because of their costly premiums. In fact, only around 10% of the long term care marketplace are now stand-alone products. Thus, today's employers are looking at a range of solutions, including products that combine life insurance with LTC riders. 

For example, an employee might be able to use the accelerated death benefit rider on a life insurance policy that allows them more immediate access to necessary funds to cover any long-term care needs. It's just one example of how employers can help break this cycle by rethinking how their benefit offerings support employees' needs in these situations.

Also consider what benefits can fill in the gaps of long-term care coverage by providing ancillary services that address related issues that come with long-term care. This could include an employee assistance program that offers financial or mental health counseling, or a legal plan that gives employees access to legal counsel and resources. 

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How legal fills the caregiving gap – now and for the future
Legal benefits can play a pivotal dual role in providing services and expertise to help employees both with immediate caregiving needs for loved ones, as well as helping them plan ahead for their own care needs. For example, by offering access to attorneys for legal guidance, legal plans can help employees prepare for their long-term care needs. The benefit also enables them to create critical documents, like wills and trusts, to protect themselves and their loved ones financially and from protracted legal processes that often accompany long-term care scenarios, such as probate or Medicare or inheritance disputes. 

Legal insurance plans may also feature caregiving referral services for the parents and grandparents of employees, where they can work with an elder care advocate who can provide information and referrals when selecting a care facility for a loved one. 

The long-term care landscape is getting even trickier to navigate — and hybrid product solutions will continue to evolve in response. These changes will prompt employers to keep searching for innovative and attainable ways to assist employees with the immediate needs of caregiving, as well as addressing their own care needs when they're older. As a valued and informed guide in that process, suggest your clients consider complementary benefits, like LTC riders, EAPs, caregiving services and legal insurance. 'Smart pairings' can give your clients' employees the additional tools and frankly, the peace of mind, to deal with the rising costs and complex situations that come with long-term care.