ID Trends Summer 2022 - Page 18

18 ID Trends NAILBA

Linked Benefits Trends

Linking into the conversation

Today , more than ever , people are facing the effects of our aging population , and one of the biggest impacts on a family ’ s financial wellbeing can be the costs associated with long-term care . Without proper planning , families could watch a lifetime of hard work and savings quickly evaporate with an extended care event . Financial Security for All is important for each of us to take seriously , and one of the biggest values you can provide for your clients is helping them mitigate the financial shock that a longterm care event could have on their family .
Kurt Fasen , LLIF , LUTCF serves as Sales & Marketing Executive for Diversified Brokerage Services ( DBS ), a Minneapolis-based Brokerage General Agency .
According to the U . S . Department of Health and Human Services , someone turning 65 today has almost a 70 % chance of needing some type of LTC services and support in their remaining years .
LongTermCare . gov
The two biggest concerns clients typically have about long-term care coverage are the potential of increasing premiums on standalone LTC insurance and having to pay for something they may never use . Fortunately , linked benefits offer a solution to these concerns .
The term , linked benefits , covers a wide range of LTC / CI features that are associated with a life insurance or annuity product . The two primary groups of solutions are : LTC / CI Rider added to an insurance policy . Many times , these will have continuous premium payments , and the LTC / CI benefit that is based on the total death benefit is paid out of the future death benefit amount . The rider may or may not have a separate premium charge for the benefit . These plans are ideal for someone focusing on both a death benefit and LTC / CI need . Asset-based Long-Term Care Product . These can be funded differently based on carrier features from single pay to multiyear pay and allow the policy holder to leverage their premium for future LTC benefits . These plans will favor less death benefit and more LTC coverage for the client .
36 % of caregivers with high stress levels said they were very likely to consider buying a life combination product , compared with just 21 % of those who said they had low stress levels .
2021 LIMRA Study