New GE Study Shows More Than 60 Percent of Those Polled Know Someone Who has Required Long Term Care; But less than 20 percent believe they are sufficiently insured for their own long term care needs

Business Wire, Oct 12, 1999

RICHMOND, Va.--(BUSINESS WIRE)--Oct. 12, 1999--

GE today announced key findings from an extensive consumer study on long term care, which polled more than 1500 Americans between 35 and 84 years of age. The study revealed that 64% of respondents are "anxious" about meeting their financial goals, yet the same number of those polled say they will rely on "smart investing" to take care of all their financial needs - including long term care - when they are retired.

The study also shows the majority of respondents will probably not consider purchasing long term care insurance as part of their financial planning, despite 61% having a friend or family member who has required long term care.

According to a report in the July 1999 Kiplinger's Personal Finance Magazine, nursing home care costs currently average $51,000 a year. With the average nursing home stay 2.5 years, that translates into more than $125,000 in today's costs. By 2030, when the tail end of baby boomers retire, the American Council of Life Insurance projects nursing home care costs will average almost $200,000 annually. On average, approximately two out of every five Americans over 65 years of age will need long term care.

"A low purchase intent indicates many people are overlooking an important part of preparing for their financial futures -- that is, obtaining protection from asset depletion due to prolonged long term care expenditures," said Tom Skiff, President of GE's Long Term Care Division in San Rafael, CA. "What's staggering about these findings is that 91 percent of the respondents are not counting on Medicare to take care of them, yet only 18 percent said they have enough private insurance for their long term healthcare needs."

In the GE study, only 21 percent of respondents had begun gathering information about long term care insurance, which provides policyholders with the freedom to choose the type of nursing care they desire (including home care) and, ultimately, peace of mind they won't be burdens to their loved ones.

The survey was conducted by GE to help assess Americans' attitudes about long term care, and their overall familiarity with, and understanding of, the insurance product. To help address the gaps identified in the study, GE has begun an aggressive national education campaign. The effort includes a greatly expanded Internet-based education initiative (www.ge.com/longtermcare), an increase in local long term care seminars nationwide, editorial material for magazines, as well as TV spots on cable channels and Sunday morning news programs.

"Over the next year, we will continue educating people about the important role long term care insurance plays in protecting family assets," said Kathleen M. Ligare, Senior Vice President of Marketing at GE's Long Term Care Division. "Our study reveals gaps in communication, as well as understanding, and we want to be the company that helps fill those gaps for people and their families."

GE's Long Term Care division is part of GE Financial Assurance, an integrated family of consumer-focused insurance and investment companies committed to helping people create and preserve personal wealth, protect assets and enhance lifestyles. GE Financial Assurance's product offerings include life insurance, annuities, mutual funds, long term care coverage, supplemental accident and health insurance, auto insurance and warranties, retirement plans and lifestyle enhancement products like travel services and auto club memberships. Please visit us on the Web at (www.gefinancialassurance.com), or call 1-800- THINK GE.

-- Study data has a 95% confidence level with sampling error of plus

or minus 2.5%