16
ID Trends
2019
5 BIG trends
IN LTC INSURANCE
Health care planning in retirement including LTC
planning will continue to be top of mind for consumers
and advisors. Here is a look at trends in LTC Insurance.
products lead the way while traditional LTC products
1 Hybrid
stabilize and remain in the market.
Hybrid Life/LTC products continue to gain fans from financial advisors, who like the certainty
of rate guarantees and the flexibility to get premium dollars returned in case of death or a
change of heart. One of the major complaints in the past with this product was the large
single premium required for “asset based” plans, typically funded with an expiring CD or 1035
life insurance exchange. Now, more combo products offer longer duration payment periods
including 5-pay, 10-pay and lifetime pay.
Advantage plans offering “LTC” benefits —
2 Medicare
will it confuse the market?
Tom Riekse, Jr., ChFC, CLU, CEBS
is the Managing Director of LTCI
Partners. He has been working in the
long-term care insurance business
since 1991 with an emphasis on
communicating the value of LTC
planning to advisors, employers and
consumers. Tom can be reached at
[email protected].
Medicare Advantage plans continue to grow in popularity and will probably increase
market share over traditional Medicare plans. The lower premiums and out-of-pocket costs of
Medicare Advantage plans have obvious appeal to people despite some potential downsides.
Previous to May of 2018, Medicare Advantage plans couldn’t offer or pay for the custodial
long-term care benefits such as in-home assistance, light housekeeping, meal delivery, etc.
Now, thanks to changes Medicare regulations in it is estimated that about 7.5% of Medicare
Advantage enrollees will have access to extra LTC or chronic care benefits.
5 big trends continued on page 18
Trends in combining LTC Insurance with other products:
Combination products
Stand-alone LTC
37
%
17 %
4 %
2013
2014
-26
%
5 %
9 %
2015
-24
%
2016
-20 %
2017
-13 %
-27 %
Source: Individual Long-Term Care Insurance 2017 Annual Review and Individual Life Combination Products 2017 Annual Review, LIMRA