Welcome to Long Term Care - 360°
A Comprehensive Survey of Funding Solutions in a Changing & Challenging LTC Marketplace
There are many more LTC Planning options today, from Traditional LTCi to Linked-Benefit Plans to Chronic Illness, Accelerated Death Benefit & Living Needs Riders on Term Life, Universal Life, Whole Life and even Annuities.
While Traditional Long Term Care Insurance products can be expensive, premiums are not guaranteed, and the products are changing on a regular basis, they remain the go-to solution for those who can qualify and can afford it.
Industry research finds market resistance to the traditional approach. Below are the top reasons cited for NOT purchasing traditional long term care insurance:
- Confusion – People say it is difficult to understand the costs and what is paid by Medicare, Medicaid and long term care insurance.
- Denial – People do not believe that they will need Long Term Care insurance
- Mistrust – Clients are concerned they will not be able to rely on a long term care insurance company when they need it.
- Discomfort – It is too unpleasant to think about becoming ill and needing long term care.
When it comes time for Long Term Care planning, the first step is educating your clients about the need for protection. Explain that Long Term Care planning is not about buying a specific policy, rather it is about protecting their families and their hard earned retirement savings from the life changing event of an extended health care need.
The Traditional Long Term Care policy, as expensive as it can be, remains the preferred way to provide the most protection for a long term health care event. However, since clients have voiced many reasons for not buying a traditional LTC plan, the industry has responded with other options that can help fulfill at least part of their need for long term care protection. These alternatives may also address some of the reasons given for not buying a traditional plan.
Alternatives to Traditional LTC products can be broken down into 3 distinct groups:
- Hybrid Products - Combinations of Life or Annuity and Long Term Care Benefits
- ABRs - Accelerated Benefit Riders on Life Insurance Policies
- LTC Benefit Plans - Conversion of a Life Policy to a Long Term Care Benefit Plan through a Life Settlement
On this site, we will explore and explain the concepts and products available in each of these groups.