With today’s technology, the current need
for “social distancing” doesn’t have to stop a
producer from meeting with their clients.
In addition to accessibility, flexibility, and dependability, LTC
care plans should also, and perhaps most importantly, provide
certainty. When it comes time to file a claim, you want to know
with certainty that the plan in place will cover the entire LTC
event. While many producers design an LTC plan that covers the
“average length of stay,” 3.7 years for women and 2.2 year for
men 1 , that addresses only the average care need and excludes the
possibility of a lifelong diagnosis like Alzheimer’s or Parkinson’s.
Lifetime protection is the only way to ensure that every client has
exactly the amount of protection that they need, whether it’s for
two months, two years, 20 years or longer.
Counterintuitive purchase
While it may seem counterintuitive, purchasing LTC protection
in a down market is more important than ever. A well thought out,
written plan for LTC not only provides clients with protection for
the future, it can also enable them to help protect their remaining
savings and assets. Interestingly, this protection extends to
financial planners and Registered Investment Advisors who can
keep assets under management. This alleviates the need of having
to systematically deplete assets under management due to checks
being written from a client’s account.
With today’s technology, the current need for “social
distancing” doesn’t have to stop a producer from meeting with
their clients to discuss LTC solutions. Conference calls, screen
sharing, and “drop ticket” tools allow the producer and consumer
to have a virtual meeting, provide education, document a plan
for protection, and apply for coverage. No handshakes, elbow
“bumps” or foot touches needed! Additionally, many carriers offer
e-policy delivery where the issued contract can be emailed directly
to the consumer. This is a key advantage for businesses that have
gone to remote environments.
Certainty during uncertain times
One thing is for sure: for better or worse, current economic
conditions will change. What will not change is the need to be
prepared for an LTC event. When savings, rainy day funds, and
investment portfolios are down, it is not the time to have to
liquidate assets to pay for unexpected LTC. By reallocating a small
amount of funds today, rainy day pennies can protect assets
from a future LTC event. An asset-based LTC plan can provide
accessibility, flexibility, and dependability. A plan that offers
lifetime coverage also provides certainty. During these uncertain
times, clarity for long term protection can provide peace of mind
and the certainty our assets are in place for the future.
When savings, rainy day funds, and
investment portfolios are down, it
is not the time to have to liquidate
assets to pay for unexpected LTC.
All factors should be weighed before replacing an existing life insurance or annuity.
“How Much Care Will You Need?” LongTermCare.gov. U.S. Department of Health and
Human Services. https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.
html. Last modified 10/10/2017
www.nailba.org
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