Term Insurance

In: Random

24 May 2010

According to the Council of Life Insurers research findings between 1946 and 1964, some 76 million children of baby-boom generation-born in the United States. The ‘baby boomers’ grew up in one of the longest periods of sustained economic growth in U.S. history and enjoyed a considerably higher level of life than any previous generation. The boomers represent a disproportionately large segment of the population (approximately 28 percent) and soon to join the ranks of the elderly when they reach retirement.

By 2030, when the youngest boomers reach retirement age, the elderly population will nearly double what it is today. In 2050, when the youngest boomers turn 85 survive, the very elderly population (people 85 and over) will increase by over 300 percent.

Baby boomers do not plan for long-term care will have to take poor decisions. While term insurance is becoming increasingly popular, the majority of baby boomers who can afford to buy a policy have not yet done. According to a survey of Health Plans American Insurers (AHIP), 30 percent of Baby Boomers think they have coverage for long-term care.

The oldest boomers turn 65 this year, 2010 and the youngest in 2030. In 2050, the youngest boomers will be 85 surviving more or less the age at which long-term care is most needed. Advances in medical care and greater prosperity today translates into longer life expectancy of older adults. Increased life expectancy increases the need for long-term care in our society. The problem with the increased longevity is the fact that it is increasing at a rate faster than the improvement in the quality of health. This will result in older people live longer in the future, but also may need long-term care for a longer period of time.

The ‘baby boomers’ to many people in this group of seniors who need care in the future. If the baby boomers to plan now to do, what will happen? Do you think the Government will be in a better place financially to manage this growth? The leak in the government will be incredible. Today, Medicaid pays about 43% of costs for the elderly in nursing homes. How the government can keep up? Fewer workers will contribute to the force (your taxes) and others will be on the system through Medicare and Medicaid.

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