PASADENA, Calif. — Dubbed the sandwich generation for their position between working full time, raising children and taking care of an elderly parent or relative, credit unions are discovering this growing baby boomer segment has unique financial needs.

Many adults wouldn't think twice about doing all they can financially to pay for in-home care, prescriptions and other expenses for loved ones who made sacrifices for them when they were children. But for some, the financial strain can present hard choices. Nearly 80 million American baby boomers are working, raising a family and taking care of an elderly relative, according to data compiled by U.S. News & World Report.

To help, credit unions and banks are starting to add long-term care insurance to their lineups. The offerings assist individuals who are unable to care for themselves anymore with services ranging from having a nurse or other practitioner come into the home, an assisted living facility or other resources.

The $3.8 billion Wescom CU initially partnered with a national provider of long-term care insurance in 2001. The turnkey program had nearly 200 credit union clients but in 2003, the company pulled out of the market, said Keith Pipes, executive vice president, finance and financial services at Wescom. The following year, after looking at other providers, Wescom subsequently opted to purchase an insurance agency that offered what the credit union was looking for.

“It's an important service that we want to make members aware of,” Pipes said.

Indeed, the number of long-term care seekers continues to grow. By 2020, 12 million Americans will need long-term health care, according to the Health Insurance Association of America. Insurance can be expensive and is generally covered by Medicare, Medicaid, private insurance or personal resources. At Wescom, applicants should ideally have an annual salary of at least $60,000, Pipes said. The typical premium is around $2,500 each year, he added.

Several of Wescom Insurance Services' agents are trained to offer long-term care insurance. The typical applicant is between 50 and 70 years old, Pipes said. Because the area is still relatively new for most members, in addition to creating an education session on its Web site, the credit union is planning to send out direct marketing pieces this year.

“Health care is very expensive. You need to explain the value of how it works,” Pipes said.

Wescom identified 20% of the credit union's 190,000 households as possible clients but only half have the income to qualify for long-term care insurance, Pipes said. Still, the goal is to reach 5% penetration. The bottom line, he offered, is while Wescom's current long-term care insurance numbers are still pretty modest, they are growing each year. Over the next four years, Wescom expects to generate close to $100,000 annually in annual income including through renewals and acquisitions. Through its investment services program, there are also opportunities to integrate financial planning, an area ripe to introduce long-term care options, Pipes said.

“It's a long-term program therefore we're not putting a lot of money up front in it,” Pipes said. “The current demand in the market should really not be the focus. We're looking at the future and that's why we're developing the expertise now.”

For the past seven years, six Iowa and Illinois credit unions have partnered with First Community Trust Bank, N.A. to bring estate planning services to their respective memberships. Tred Kron, trust officer, said he has seen an increase in appointments from adults seeking help for their elderly parents.

“We all worry about finances but it's a big concern for some older people,” Kron said. “We try to take away some of their stress.”

Kron has seen more than 60 people needing nontraditional services beyond estate planning. One client, for instance, is in the grips of dementia. His wife has taken over all the financial responsibilities. Kron is assisting her with things like helping file income taxes. There have been a number of home sales lately. Several clients have asked Kron to help with paperwork and communicating with the realtors. Others just need help organizing and getting to doctor's appointments.

“We help them identify what their issues are. They may need emotional or financial help. With finances, they may have someone delegated to help consolidate accounts or make distributions on a regular basis to a checking account. Investing properly is an important concern.”

Kron said it is critical to build a trusting relationship.

“In a field like this, I encourage people to talk to a financial professional they feel confident with who has the expertise,” he suggested. “What I see, and it's not just with older people, is [clients] wanting someone who will give them good advice.”

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