Survey results
Characteristics of “ who ” is actively speaking to consumers about long-term care planning include : Equal representation between agents / advisors who “ lead ” with long-term care planning and those that make it part of an overall financial planning discussion ; Many agents / advisors from a wide variety of general insurance and specialized disciplines . Many had professional designations , some practiced law and accounting and a good number were life insurance agents and financial advisors ;
• Only 12 % represent themselves as traditional long-term care insurance specialists ; 87 % include long-term care planning in their practice ; 85 % of respondents were over age 50 ; 59 % were 60 + years old ;
• This should come as no surprise and the implications remain troublesome . 75 % focus on the upscale market though a great deal of interest in the mid-market exists . Agents / advisors surveyed were clearly passionate about the need for long-term care planning .
That said , based on the age distribution of respondents , interest in this field is wide but not deep .
85 %
Percent of respondents were over the age of 50
Traditional vs . Combo
Product preferences of those surveyed were balanced between traditional ( 53 %) and combo ( 47 %). Of the latter group , most preferred selling long-term care as opposed to chronic illness riders . While 85 % of respondents indicated a generally high comfort level with all products available , almost half of those , when pushed for specifics , indicated some hesitation in being “ fluent ” in all nuances of combo products . Questions pertaining to “ zero-premium ” chronic illness combo plans with lien or discounted benefit payment methods found that respondents generally understand the difference between defined benefits and limited or discounted benefits . They also expressed some concerns surrounding professional liability with the latter form .
Our discussion of “ Best Practices ” starts with considering how the long-term care planning conversation begins with consumers . An impressive 81 % of advisors participating in the survey confirmed that they proactively engage prospects / clients in longterm care planning discussions . Respondents also indicated that 42 % of consumers frequently ask about long-term care risk before the advisor raises the issue . An equal percentage of consumers were also concerned about financing the risk . Advisors indicated that 46 % of consumers think responsibility for paying long-term costs rests with the individual , and an additional 33 % felt it is a joint obligation with the government . Only 20 % felt that the government is solely responsible . Rising consumer awareness of the long-term care risk and an acceptance of responsibility to act has helped set the stage for future sales .
92 %
Percent of long-term care consumers motivated by personal experience
Understanding the differences
It is fair to state that long-term care combo product choices have expanded the field . The survey confirms that advisors understand the importance of understanding substantive differences in products to facilitating sales . 86 % of respondents preferred combo policies that charged a current premium for the long-term care benefit and believed these are best suited for their clients . 90 % confirmed consumers understand that when they access long-term care or chronic illness benefits on a combo policy , that the death benefit is reduced . 88 % believe consumers value knowing exactly what their LTC / CI benefit will be at the time of claim .
What the agents think continued on page 32
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