Setting up a
Americans who are now around the age of 65 have a 70% chance of needing long-term care to address the challenges of chronic illness, disability, or age, according to the Administration for Community Living. While long-term care can enable individuals to live as independently as possible, finding the right fit is a daunting prospect for those in need of care, as well as for
"Caregiving is an absolute crisis," says Lori Martin, founder of employee benefit planning company Envision Benefit Specialists. Much of her work is with employers, employees and individuals to put the most supportive benefits in place for those nearing retirement. "A lot of caregiving stories you read are pretty heart wrenching. But when there's a plan in place, it can be a different experience."
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A long-term care plan often involves making legal and medical decisions, finding a supportive housing environment and day-to-day living needs. Yet these time-consuming choices can be a burden on employees juggling professional responsibilities, as 20% of people aged 65 or older were still employed in 2023, according to The Pew Research Center, and approximately 20% of employees are in a caregiving role that requires them to oversee all or some of these issues.
For insurance and benefits experts, a deeper knowledge of the nuances of long-term care can lead to the best benefit selections for employers and their employees. To hone their expertise, Martin recommends looking into a long-term care certification (CLTC). The 16-hour course is geared toward any professional that plays a role in long-term planning, covering all types of extended care that individuals and their families should be aware of.
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It also emphasizes the importance of early communication with clients and employees about things like long-term care insurance (LTCI) so that people are getting the coverage they will need today, rather than waiting until a health issue occurs that makes them or their loved one ineligible.
"A lot of the focus is on how you talk about long-term care planning, because it is not a sexy topic," she says. "It's something people don't want to think about — being old and frail and needing help — but it just needs to be brought up proactively. The coursework also talks about the history of long-term care insurance, because old policies do not have the same coverage that they do now, and tax benefits, and all the different products that are out there in the marketplace, and then how to design plans."
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Surveys from SHRM show that between 20-30% of employers currently offer LTCI, which reimburses policy holders for non-medical costs related to daily personal care in the home or a residential care facility. While individuals can purchase it for themselves, it can also be purchased by children on behalf of their aging parents. Digital platforms that offer guidance and help with areas such as emergency savings, retirement planning and caregiving are also becoming increasingly popular.
Even if an employer cannot offer all of these things, advisers and HR professionals can present a list of available outside resources if they're well versed on long-term care, giving employees — especially caregivers — a great jumping-off point, Martin says.
"Where I live in the Chicagoland area, there's some major senior service associations, and it's a combination of nursing home administrators, and people who have home care agencies and people like me, and anybody who's doing work in the senior space," she says. "Those are fantastic resources that employers should have as a part of a benefit."
