In the next few decades, senior care facilities may be seeing quite the spike in residents. As the baby boomer generation ages into retirement and beyond, an unprecedented burden will we placed on the senior living industry. According to the U.S. Census Bureau’s 2017 National Population Projections, all baby boomers will be over the age of 65 by 2030. Additionally, seniors are projected to outnumber children for the first time in U.S. history. By 2035 there is expected to be approximately 78.0 million seniors (65 years and over) compared to 76.4 million children under the age of 18.
This turning point in the U.S. population opens up a great opportunity for agents and brokers to grow their business in this sector of the insurance industry. However, agents and brokers should educate themselves in the complexities of the long-term care and senior living market before they take on this task.
Challenges for Agents
One trend with current and future seniors is that their decisions and opinions on elder care differ greatly from their parents and grandparents. According to AARP data, 87 percent of adults age 65 and older want to “age in place” in their current home and community, and 71 percent of people between the ages of 50 of 64 want to age in place as well.
While it is a positive thing that more seniors are healthy enough to stay in their homes for longer, when they do need to be placed into assisted living, they will be on average 10 to 15 years older than previous generations were when they entered into senior care facilities. This means that facilities will likely see a sudden increase in new residents that need a higher level of care than in previous generations – an influx they may not be properly equipped to handle.
How Can Agents Help Senior Care Facilities Adapt?
The increased burden on senior care facilities paired with increasing cuts to Medicare and Medicaid will leave them with more risks and fewer resources. Agents will need to provide coverage that is designed to offer broader protection to ensure their senior care facilities have comprehensive insurance coverage and risk mitigation. Because the risks of senior care facilities are unique to this sector, agents and brokers should partner with insurance wholesalers who specialize in risk management solutions for senior care facilities. By understanding the risks and challenges that senior care facilities face, agents can provide the best solutions for their clients and grow their businesses in a thriving industry.
About Highland Risk Services
At Highland Risk, we use our expertise and experience to provide insurance information and programs to those who serve long-term care and senior living facilities. Since 2007, we’ve been offering insurance and risk management plans designed to help our agents give their clients the ability to achieve continued growth while simultaneously protecting against loss, containing costs and increasing profitability. With offices to serve you in Chicago, Illinois and Phoenix, Arizona, we do everything we can to make your experience with us as professional and transparent as possible. To learn more, contact us at (877) 890-9301.