LONG-TERM CARE
A shift in extended care planning
According to the American Association for Long-Term Care Insurance , 350,000 Americans purchased long-term care protection in 2018 . Of those 350,000 , only 16 % purchased the “ use it or lose it ” traditional long-term care insurance policies . That means the other 84 % purchased coverage with a linked benefit of some sort .
Traditional vs . alternative solutions
This is not surprising to those of us who deal with long-term care planning on a daily basis . However , many advisors are only vaguely familiar with most of the linked benefit or assetbased long-term care contracts available today and most of the time it is no fault of their own . After seeing clients hit with rate increases on traditional coverage , many financial advisors would rather use alternative solutions rather than traditional long-term care insurance .
Today , there are only a handful of companies offering traditional long-term care coverage . The industry has seen a massive shift in how retirees are planning for this possibility which has caused many insurers to distribute products that meet the growing need for guarantees , adequate protection , and benefits beyond long-term care needs such as a death benefit .
Ryan Quante , Senior Sales Consultant at Simplicity group , has had a hand in placing $ 50 million in Asset Based Long-Term Care premium consecutively for over 5 years ; working with financial professionals , agents , and elder law attorneys on implementing Long-Term Care strategies .
Americans purchasing long-term care protection ( 2018 )
Meeting a need
In contrast to only a handful of companies offering traditional coverage , there are over 10 well-known insurance carriers offering long-term care coverage built on a life insurance or annuity chassis . These policies may be built on a life insurance or annuity base ; however , they are designed with one thing in mind and one thing only : solving the long-term care need .
Positioning long-term care coverage in this way could be a massive opportunity for financial professionals as many consumers do not know this benefit style exists . Using this strategy , you are able to show consumers a way in which they can double , triple , or even quadruple their benefit base pool for long-term care on a tax-free basis and receiving the benefits is an easy as providing a bank account number and routing number . Again , the best part is this care can be provided in the insureds own home setting , which can lead to a significantly better quality of life for your clients . Many clients prefer to remain in their own home as long as possible , especially after what we ’ ve seen in Nursing Homes since Covid-19 swept the nation .
Linked-benefit coverage
84 %
Traditional long-term care insurance
350,000 Americans purchased
16 % long-term care protection in 2018
40 Perspectives Q4 2021