Consumers want LTC insurance--whatever it is.

Middle-class and affluent American workers rank long-term care insurance as equal in importance to group life insurance when selecting employee benefits, but whether they understand what LTC insurance covers is another story, according to Prudential Financial, Inc.'s 2003 LTC Insurance Employee Benefit Study.

While 62% of respondents would consider LTC insurance as a voluntary benefit if offered it, employer-subsidized LTC insurance is especially attractive, with 82% saying they would consider buying coverage if their employer shouldered some of the cost. In fact, 30% would "definitely" purchase LTC insurance if it's employer subsidized, compared to 14% saying they would definitely buy unsubsidized coverage.

However, the study found that 56% of respondents were not familiar with the benefits and features of LTC insurance; only 14% said they were "very familiar," and only 30% have talked with a financial professional about it. Two-thirds of respondents believed, or didn't know if, the government would pay for their potential nursing home and home health needs, mirroring results from other studies (see Nursing Homes/Long Term Care Management, July 2003, p. 12).

The survey involved 300 individuals ages 25 to 65 employed full time or part time by companies with 500 or more employees and with annual household incomes of $40,000 or more.