On Monday's Show: Steve and Joe discuss the facts, the probability stats and where it's at with living benefits and standalone policies.

Most people (75 percent) said they would use savings to pay for the otherwise uncovered expenses
of long-term care. The challenge with this is that federal data shows the cost of long-term care can
easily exceed $60,000 a year — an expense that would quickly drain the average U.S. family's savings
of $120,000. While some Americans have heard about long-term care insurance, it ranked seventh in a list of likely sources for funding the cost of long-term care.

Survey respondents indicated a preference for flexibility as they planned for the future. Of the 39
percent who said that they felt confident about handling long-term care costs, the vast majority
said they had increased their liquid assets — by contributing more to savings, investments or
traditional retirement savings. "The survey shows consumers are not aware of all of the funding options they have to pay for long-term care. Unfortunately, many do not realize that programs like Social Security simply will not cover all those costs," said Mark Konen, president, Insurance & Retirement Solutions, Lincoln Financial Group.

"Consumers seek more flexible solutions when planning for their futures," he said. "They are
hesitant to risk spending their money for limited protection. They want long-term care if it becomes
necessary, but they also want to protect their assets if it does not." Konen cited the survey as evidence that validated the need for long-term care hybrid products, which pay guaranteed benefits to customers who remain healthy but provide long-term care benefits to those who do not.

Long-term care by the numbers. What loved ones sacrificed to pay for their own long-term care:
How loved ones paid for the costs of their own long-term care: used savings, used money from loved ones, family or friends, sold their homes, declared bankruptcy, stopped going out to dinner, stopped donating to charity, sold their homes, sold their cars, fear they will be a burden, to their families
with assets of less than $100,000 fear they will be a burden to their families are confident they have planned for the costs of long-term care.

Steve Savant is a national insurance columnist, financial color commentator and host of the daily Internet talk show The Business Insurance Zone. Steve's special guest is Joe Racich, hybrid product expert.

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