By 2034, the U.S. is projected to have more people over 65 years old—77 million—than under 18 years old—76.5 million—for the first time in history, according to the U.S. Census Bureau. With this swelling number of older adults, the country could see greater demands for healthcare, in-home caregiving and assisted living facilities. 

This statistic is concerning in itself and even more so when it is dovetailed with data from the “2024 Nationwide Long-Term Care Survey" that says “55% of Americans don't believe there are going to be enough paid caregivers when they need them," says Holly Snyder, president of life insurance, Nationwide. “And one-third of Americans don't think they are going to be able to afford long-term care in their home."

For those categorized as the “sandwich generation"—people raising their children and taking care of their parents—ensuring they have the necessary and sufficient life coverage for their family's future needs is essential.

However, the many misconceptions about the cost of life insurance and how it works are impeding consumers from purchasing the coverage they need. This is where agents' expertise in life insurance products plays a key role in educating and highlighting not only the importance of life insurance for consumers but also that of long-term care and disability insurance.

“The first thought that often comes to mind about life insurance is the death benefit," says Rob Schaffer, head of product, individual life insurance, Prudential. “While that's the primary use for life insurance, many policies offer cash value that you can use during your lifetime to help pay for medical care and other personal expenses."

Yet, only 52% of American adults own life insurance, with 41% of adults remaining uninsured or underinsured, according to LIMRA. Alleviating this issue involves “talking with a financial professional to determine what works for a particular customer and meet their needs," Schaffer says. “It's also worth noting that riders on policies can make all the difference when it comes to unexpected chronic and terminal illnesses. And when children and parents are depending on you, the importance of income protection can be even greater."

Additionally, “we have to find better ways to reach more middle-market consumers," Snyder says. “And of course, there are those consumers that wouldn't traditionally be working necessarily with a financial professional."

Numerous products are available to consumers, including those that can be purchased without labs or examinations. One of the simplest products to consider is a term life insurance policy, providing coverage for a certain period, or a specified “term" of years, paying a death benefit if the insured dies during the specified period.

“Then there are much more complex offerings like index universal life or variable universal life solutions," Snyder says. “It's important to understand that you can use life insurance in a tax-free way by taking out loans. It's not as well known as it should be that life insurance is one of the best retirement income supplemental sources."

Only 20% of Nationwide survey respondents said they have purchased long-term care insurance and, of those who have not purchased the insurance, 49% cited cost as a reason for not prioritizing it. Yet, after being presented with a description of a sample long-term care insurance policy and told it costs $130 a month, 40% said they were willing to consider purchasing one, the report said.

Olivia Overman is IA content editor.