LONG-TERM CARE
You say Niche, I say Not!
Angie Hughes, LTCP, is a partner of
Producer’s XL and speaks for local
NAIFA Chapters and SFSP Chapters,
as well as at national sales summits
about life insurance, disability
income, annuity, LTC, Critical Illness,
and Medicare solutions. Contact
Angie at [email protected].
What would you consider a niche market? Is it short-term medical? Is it corporately owned
life insurance? Well, I can’t help but to think that we’ve allowed Long-Term Care Insurance
to become a niche market, however not in the way you’d expect. Niche relates to products,
services, and interests that only appeal to a small, specialized section of the population and
while I believe that LTCi provides a service that’s almost universally valuable I also think that,
as agents, we have limited the market with our practices to the point that it neatly fits this
description.
For several reasons only a small, specialized percent of agents regularly discuss Long-Term
Care needs with their clients. In a 2017 study of both agents and clients produced by Versta
Research in conjunction with Lincoln Financial, it was found that 90% of people believe
advisors should discuss Long-Term Care needs with clients, but only about 14% of individuals
have spoken with their advisor about paying for Long-Term Care in the event they need
it ¹ . There’s a clear disconnect here; all too often we put off talking about Long-Term Care
planning with individuals until they ask about it. At that point it’s probably too late for an
uncomplicated discussion.
We should be more confident than ever to talk about all the different planning strategies
that are out there today. I work primarily with Property & Casualty agents, so I reinvent the
wheel all day, every day. I understand that LTC isn’t what puts food on the table. It’s the gravy
on the mashed potatoes. It’s the salt on your sirloin. It’s the tiramisu that you want to save
room for. Once you get yourself comfortable with starting the conversation, you’ve already
taken the hardest step.
Obtainable success
LTCi doesn’t have to be a niche,
reserved for a select number of
agents willing to jump through
hoops. If you keep a few points
in mind, being a successful LCTi
agent is an obtainable goal:
28
Perspectives
Q1 2020
Underwriting
You need to speak with your clients before they become
uninsurable. This means you’ve got to broach the conversation
early. Don’t be afraid to plant the seed in their 40’s. If I were a
gardener, I’d attest to planting lots of seeds, so you’ll have to
trust me when I say sometimes it takes a lot of seeds before
you see the plant grow. It takes time and patience. Long-Term
Care planning is no different. Sure, underwriting is more difficult
now, but the need is still there. Of course, underwriting is more
difficult if you’re waiting for your clients to ask about LTCi; there’s
a reason they’re suddenly interested.