LONG TERM CARE
The 5 Ws of Long-Term Care planning
As we sort through tens of thousands of survey responses provided by nearly 1,000 agents and advisors to our recent
Sixteen-years ago private long-term care survey conducted with Oliver Wyman we thought a discussion insurance sales rose to nearly one million pertaining to the context and mood of what we are seeing
new American insureds per year . Today only and learning from around the industry is in order .
250,000 per year are willing to pay a premium Long-term care planning continues to haunt , confound and yet inspire marketing efforts . Past advisor and consumer for additional insurance protection . Another analysis point to the conclusion that private insurance
250,000 purchased life insurance with solutions are needed . We know the best answers include
“ no-cost ” chronic illness ADBR ’ s . leveraged insurance solutions , both public or private .
Sixteen-years ago private long-term care insurance sales rose to nearly one million new American insureds per year . Today only 250,000 per year are willing to pay a premium for additional insurance protection . Another 250,000 purchased life insurance with “ no-cost ” chronic illness ADBR ’ s , however , no one is certain that these “ living benefit riders ” made the life insurance purchase “ easier ” in any way or if advisors or consumers see them as a value add . The long-term care planning community does continue to garner important support from affiliated and non-affiliated distribution . Finally , the COVID-19 pandemic has increased overall mortality by 20 %* with a large proportion of deaths have taken place in an institutional setting we have tried so hard to serve .
Ronald R . Hagelman , Jr ., CLTC , CSA , LTCP & Barry J . Fisher , LTCP are Principals of ICE FLOE Consulting , LLC . With decades of expertise in the life and long-term care insurance industry , they provide product development , distribution & training strategies for extended care risk . www . icefloeconsulting . com
Where do we go from here ? Create a new and improved approach to long-term care planning and risk mitigation . A re-examination of the emotional and financial firestorm created by an unplanned for long-term care event . A clear pronouncement about the value proposition and tax advantages of using insurance to mitigate the risk . Tax-free benefits and sometimes even tax-deductible premiums . Create a national voice for enhanced consumer awareness and buying action with a common theme we can all support . We need real-time reliable feedback on all aspects of the long-term care planning sales process . This would include a closer look at agent / advisor and consumer motivations and who is selling and purchasing long-term care insurance planning solutions . Refocus the conversation on “ purpose ” as opposed to “ price ”. What can we do to help those who wish to stay at home when they need care and retain control of their overall claim destiny ? Reduce premium to the greatest extent possible while still creating meaningful coverage . The challenge remains ; how do we sell less to more and make it count .
Organizations such as NAILBA , NAIFA , CLTC , LTC Bullet & Broker World Magazine , along with traditional and combo insurance companies , affiliated and career distribution remain at the forefront of education , training and new product development . As American society ages the importance of providing individuals and families with liquidity to pay for care grows exponentially . Reliance on the government is not the best option . Our efforts to provide choices and peace of mind continue .
* JAMA . 2020 ; 324 ( 15 ): 1562-1564 . doi : 10.1001 / jama . 2020.19545
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