Should You Be Worried About the LTCI Industry?

Many industry experts say that, while one of the biggest challenges to selling LTCI remains perceived cost, long term care insurance is still one of the most underpriced products available on the market. And while the headlines proclaiming rates and prominent companies suspending their sales might not ease your customers' worries, you – as a seasoned professional – certainly can.

Your clients are living longer, increasing the likelihood that they'll experience a long term care event during their lifetime. Millions in LTCI benefits are paid every year. This means that more people are cashing in their LTCI policies – but that also means that rate hikes are inevitable (and probably justifiable). Talk to your clients about the possibility of living a long time through a long term care event – or even more than one – explain why the rate increases make sense, and then see if they become more comfortable with the idea. Chances are, they'll warm up to it – and the LTCI industry isn't going anywhere.