LONG-TERM CARE
What the agents think from page 31
Quality matters
Quality benefits matter to advisors and consumers . The survey found the following policy features enhance client purchasing interest : Multiple policy features that appeal to a wide variety of consumer needs . Premium rate guarantees . Inflation Protection . Reputation of company ( i . e . ratings , length of long-term care experience ) How do advisors tailor their approach to recommending long-term care planning solutions ? 43 % based on client affordability . 52 % understood partial risk replacement was the best approach
• Only 5 % responded that total risk replacement was their preferred method .
This response indicates an understanding that reduced benefits provide an acceptable planning solution and bodes well for increased marketing penetration , especially in the mid-market .
NO
41 % YES
59 %
81 %
Do you think the absence of a chronic illness or long-term care benefit rider justifies a 1035 Exchange conversation ?
Percent of advisors initiate a long-term care planning conversation
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 .
A V-8 moment
Policy review was an important focus of several survey questions and may have provided us with a powerful “ I should have had a V-8 ” moment . Survey results indicate that respondents clearly recognize the value of policy review for consumers and a key to future sales . Traditional policy review is a balance between policy performance and the availability of new benefit options . We therefore suggest that asking prospects if their existing life policy provides long-term care benefits will lead to more combo sales . This has been a successful technique for more than a decade in the zero-premium combo policy market . Our survey adds considerable credence to the notion that this would be a successful strategy for all combo product sales . Agents / advisors surveyed told us the following : 85 % consider adding a long-term care planning benefit to be in the policyholder ’ s best interest . 79 % say that they already have had this conversation with prospects / clients . 59 % say that the absence of a long-term planning benefit justifies a 1035 Exchange . 72 % consider a 1035 Exchange discussion to be an integral part of policy review . We previously noted that 81 % of advisors initiate a long-term care planning conversation . The top three reasons are : 1 . LTC is an important part of a financial plan . 2 . They consider themselves a long-term care insurance specialist ( 12 %). 3 . They own a policy .
46 % 33 %
What the agents think continued on page 34
32 Perspectives Q1 2021