Providing long-term care to a loved one is “expensive” on many levels, according to an annual survey from Genworth Financial, The True Impact of Long-Term Caregiving. Caregiving responsibilities shouldered by primary and, to a lesser degree, secondary caregivers affect finances and career and personal relationships. For example, according to the survey, among primary caregivers:
Among those reporting cutting back on savings, contributions to savings plans were reduced by 73% and to 401(k) plans by 65%.
On the home front, primary caregivers can see their personal relationships suffer. Increased stress with a spouse was reported by 44%, with siblings by 27%, and with children by 23%.
Career impact is just as significant. Among primary caregivers:
Statistics from MetLife document how employers also feel the impact of employees’ caregiving responsibilities, estimating that caregiving by employees costs U.S. employers between $17.1 billion and $33.6 billion in lost productivity annually, surfacing in many forms: Time away from work, tardiness, workday interruptions and reduced concentration. In bringing a Long-Term Care insurance offering into a voluntary benefits program, an employer can counter these negative effects proactively, as well as enhance employee recruitment and retention efforts.
The value Long-Term Care insurance can have for caregivers is seen in a study from Greenwald & Associates for New York Life. Baby Boomers -- the generation currently most engaged in caring for aging parents -- increasingly are seeing the value of Long-Term Care insurance, though few have acted on this realization and actually purchased a policy. Of Baby Boomers whose parents had Long-Term Care insurance coverage in place and used it, 72% said it was a good value. When asked about the key benefits of the coverage, 84% said it lessened the family’s financial contribution to care, 77% said it lessened the time family members needed to commit to providing care, 76% said it increased the quality of life for all involved, and 70% said it preserved their parents’ nest egg.
Offering employees the chance to purchase Long-Term Care insurance through a voluntary workplace-based plan will save them money, due to group pricing. It also represents a tremendous convenience for employees. Many people do not understand the ins and outs Of Long-Term Care insurance, nor how it differs from their medical coverage. Present your company as an employer of choice, and add Long-Term Care insurance to your voluntary benefits offerings.