SUMMER 2022 19
The top five reasons people give for considering a combination life insurance product include :
35 % Concern that LTC costs may deplete or exceed my savings 33 % It is a more economical use of my current assets 29 % Benefits will be paid even if I don ’ t incur LTC expenses 26 % LTC insurance ( on its own ) is too expensive 25 % I can ’ t afford two separate ( life and LTC ) policies
“ Interest in Life Combination Products Shifts ” LIMRA
Weaving into planning discussions
Many times , asking a simple question is all that ’ s needed .
For example : “ While I am working on a few ideas for life insurance I ’ d also like to ask how you ’ re planning to cover any LTC expenses in the future . Would you like to see an option where life insurance and LTC are bundled together ?“ “ As I was reviewing your information , I see you have money set aside in a money market account . What are your plans for those dollars ? I ’ d like to show you a way we could leverage these dollars to help mitigate the future financial impact of long-term care by using a linked benefit product .”
By asking these questions of the financial professionals who work with our firm , we see over 75 % of all the cases we design have some form of LTC / CI benefit incorporated into the case .
Listening for client clues
I don ’ t want to pay for something I may never use . ( A linked benefit solution will help off-set future LTC costs or provide a death benefit in the future .) I have great health and certainly wouldn ’ t be needing care . ( Are you willing to risk your retirement portfolio on a bet ? Perhaps you can leverage some of your dollars in an assetbased product to mitigate the risk .) I ’ ve decided to self-insure . ( If you are managing the assets , what bucket will be the first to liquidate ? What happens if you need to liquidate in a market correction period ? Perhaps some level of security is a good hedge .) I hear the premiums on LTC policies go up a lot . ( Yes , standalone LTC insurance may not be guaranteed for future premium levels . However , linked benefit solutions base the premium on the age & rate class at the time of purchase . Therefore , you can lock in today with a predictable future regarding premiums ).
Some advisors find the area of linked benefits confusing and thus they avoid the conversation , but the good news is that there is a wealth of easy to access resources to help you gain confidence in the area .
Mitigating the financial impact that LTC can bring is a key part of financial security for all . Make sure you take time to find ways to incorporate this into your planning discussions . While it may be a new area for some it ’ s a valuable service , and easy to add to the mix . Good luck and thanks for all you do !
Consumers that would consider a life combination product
50
40
45 %
48 %
20
10
17 % 23
%
26 %
0 |
2019 |
2020 2021 2019 |
2020 2021 2019 |
2020 2021 |
Extremely or very likely Somewhat likely
Slightly or not at all likely
Source : Consumer perspectives on long-term care and insurance ( 2021 ), LIMRA