If advisers don't think there is much of a market for Long Term Care insurance, they should think again. The majority of baby boomers have not planned accordingly for long-term care expenses and mistakenly believe they have the resources to cover such care. These mislead boomers may be able to find assistance from their employers -- who are increasingly willing to help cover long-term care. 

Among boomers nearing or at age 60, only 25% say they are "very familiar" with LTCI, according to a survey released last week by America's Health Insurance Plans. About 30% of boomers think they have LTCI, but only about 5.2 million Americans are actually covered, AHIP reports. 

"This should be a wake-up call to baby boomers," says Karen Ignagni, president of AHIP. "They aren't factoring expenses for long-term care into their retirement planning and are missing an opportunity to protect themselves." 

Nearly 70% of Americans have not made any plans for their own, a spouse's or another relative's long-term care needs, even though more than half of those surveyed have had a loved one who needed some form of long-term care, according to a recent survey from Genworth Financial. Still, at least 44% of Americans incorrectly believe that Medicare or their private health insurance will pay for long-term care, Genworth reports.  

Fortunately for advisers, what boomer employees aren't picking up on, is being duly noted by their employers. More than 90% of employers offering LTCI think the benefit is important enough that they're ready to help pay for it, according to a recent study from Unum. This is a "dramatic shift" from earlier years, when the market generally required 100% employee-paid long-term care coverage, Unum notes. 

The insurer reports a 54% increase in new enrollees in long-term care insurance during the first half of 2007. It also found: 

• In 2006, the average age of issue for a group long-term care insurance policyholder was 43.5, down from an average age of 47 in 2000.
• Women outpace men slightly, representing 52% of the purchasing population.
• The top five states purchasing long-term care insurance are California, Texas, Pennsylvania, Florida and Illinois.  
• There was a 5% increase over the past four years in those selecting the $5,000-$6,000 monthly benefit as a result of the rising costs of long-term care.