75 Must-Know Statistics About Long-Term Care

Who will need it and for how long, how much it will cost, the state of the long-term care insurance marketplace, and the toll on caregivers.

If there’s a single unsolved problem in the retirement plans for many middle and upper-middle-income adults, it’s what to do about long-term care costs later in life.

Very high-income, high-net-worth people can plan to self-fund long-term care costs, though I’d advise them to do the math on long-term care cost inflation before getting too comfy with the idea that they’ll have enough to do so.  Meanwhile, people without significant financial assets will need to rely on Medicaid-provided long-term care.  That’s most people: Medicaid and other government programs cover the majority of the long-term care costs in the U.S.

Sandwiched in the middle are people with some, even significant, financial assets–just not necessarily enough to comfortably fund a $300,000 (or more) long-term care outlay at the end of their lives.  For them, the choices are stark and rather unappealing.  They could purchase traditional long-term care insurance and risk premium hikes.

Alternatively, they could purchase one of the increasingly popular hybrid life/long-term care products and face an opportunity cost, as discussed here.  Or they could forego insurance altogether, planning to self-fund care or use nonportfolio assets, such as a home sale, to cover any long-term care costs.

The best way to make smart decisions is to go into the process armed with the facts.  How likely are you to need long-term care and for how long?  What does long-term care cost, and what does it cost to insure against it?

Click here to view the 75 Must-Know Statistics About Long-Term Care

Originally published August 20, 2018, on Morningstar

A Fresh View On The LTC Insurance Market

Learning how to adjust to the changing market is crucial to the continued success of your Long-Term Care (LTC) Insurance business.

Today’s market reflects an expanding, diverse clientele, so being able to respond to their unique needs and budget constraints is critical.  The first step is to understand their concerns around buying coverage, including potential objections about the cost of a policy.

Adapting your approach to the new market will not only demonstrate that you are responding to changing trends, but will ultimately help to increase your LTC Insurance business.

3 important concepts to consider:

Who Should I Target?

The “younger” segment of the LTC Insurance market includes 45-55 year olds.  And while they may understand the need for LTC Insurance, many have competing financial responsibilities, and feel they don’t have the disposable income to spend on a policy.  Your challenge is to create a sense of urgency about the importance of applying when they are younger and healthy, and show them there are affordable ways to access LTC Insurance coverage.

How Can I Help My Clients?

Your clients may not know that they have a surprising amount of flexibility when designing LTC Insurance coverage.  Buying a policy is not an all-or-nothing proposition.  If you start with a policy design that addresses 100% of your clients’ anticipated future care needs, you can offer alternate designs to help lower the premium, if necessary.

For example, suggest shortening the Benefit Period to 3-5 years to save money, while providing ample coverage for most care needs.  Leaving off compound inflation protection can also make a big impact, potentially cutting the premium in half.  With this strategy, consider other alternatives for inflation protection or a higher initial daily benefit to account for future cost of care.

What Can I Do To Succeed?

One of the characteristics of the new market is that the public is more aware of the need to plan ahead for LTC.  They are open to having long-term care planning discussions, and will welcome your guidance.  Take a proactive approach and make it a priority in your practice to initiate LTC planning discussions with your clients by age 50.

By connecting with your clients, emphasizing the value of LTC Insurance protection, and showing that coverage can be adjusted to meet their budget, you will demonstrate that you have their personal needs in mind and are on top of the latest product offerings.  And, that is a recipe for success for years to come.

Contact your LTC Sales & Marketing Associate today for more resources and information.

Honoring The Last Wish: The Realities Of LTCi

“What’s your plan?”

That’s the question we encourage agents to ask their clients – because when there isn’t one, the consequences can be heartbreaking.

The New York Times article referenced below addresses the realities of what can happen when there is not a plan in place – through the tragic struggles involved in trying to honor a man’s wish to die at home.

It documents the various requirements of the healthcare system, including Medicare and Medicaid, that can make it nearly impossible to get in-home care.

When you read the story of Joseph Andrey, think about the impact you can have on someone’s dignity of life.

You have the opportunity to make sure this does not happen to any of your clients.

Access the New York Times Article: “Fighting To Honor a Father’s Last Wish: To Die at Home” here.

A comprehensive long-term care insurance policy will cover home care, adult day care, hospice, as well as, assisted living and nursing home.  It also provides the insured with the dignity and independence to choose where they get their care.

Please contact your LTC Specialist to discuss how we can help you make a difference in your client’s lives – to design a plan that is both affordable and the best solution for your clients’ needs.

3 Simple Steps To Generate More LTCi Leads

While educational seminars or direct mail campaigns are good lead generation tools, these campaigns can be costly and usually take time to yield considerable results.

So how can you build momentum and grow your Long-Term Care Insurance business without breaking the bank?

Follow these 3 simple steps:
  • Identify price-sensitive consumers in your client/prospect database who are currently on the fence.  While these leads may have grown cold, the introduction of an affordable price point could warm ‘em right up.
  • Schedule a brief meeting with each of the prospects you’ve spoken with in the past, to discuss the type of plan that would meet their needs and budget concerns.
  • Use tailored needs-based marketing and support.  You stand a better chance of shortening your sales cycle and generating new business.

Make certain your clients have the right LTC plan in place to meet their needs.

Contact your LTCI Sales Rep for more information.

3 Key Questions Demonstrating The Need For LTC

Finding reasons why your clients need LTCi can be a challenge.  You want them to understand the importance and need for the product, and also how it can impact them and their family.

Ask these 3 questions to your prospective clients to drive the point home on why having a LTCi policy is so important.

1. What’s your plan?

Your client has probably not thought about what they will do when they reach an age when they need help with tasks they are used to doing themselves.  Have they thought about where they will live, or who they will live with?  These planning questions are a great starting block to getting the LTCi sale.

2. Who do you know?

Ask your client if they know someone that has been in a LTC situation, or maybe they have even been in one them self?  If they have seen the emotional, physical and financial burden a LTC situation can have, they most likely do not want the same to happen to their family.

3. How will you pay?

Does your client know that health insurance does not cover LTC services?  Explain to them that a LTCi policy can give them the care they want and prefer.  A LTCi policy can also make sure funds are available when your client needs them, then they won’t diminish their retirement savings or have to liquidate assets.

These questions are just the beginning on how to demonstrate to your clients the need for LTCi.  Be sure to ask these questions and stress the need of LTC on your next appointment.

Our LTC Team is available to answer any questions you may have.  Contact us today.