The findings: Nearly two-thirds of pre-retired customers underestimate their annual healthcare expenses by over $7,000, according to a study by Jackson National Life Insurance Company. Many also fail to predict the need for long-term care, with only 27% believing they will require it, despite 70% of individuals over 65 needing it at some point.

What this means for insurers: Life insurers offer products such as long-term care insurance, hybrid life and long-term care policies, and annuities that can help cover these expenses. By educating consumers on the true costs of care and positioning their products as essential financial planning tools, insurers can not only support their clients’ financial security but also expand their market opportunities. 

Proactively addressing this knowledge gap through targeted education and personalized solutions can enhance customer trust and drive product adoption.