Once again, the long term care industry has been blessed with another onslaught of negative publicity. Major companies announced rate increases to thousands of policyholders, and name-brand LTCI carriers decided to completely exit the market – moves that have led to prospect and advisor discontent. Survey after survey continues to indicate that many consumers are concerned about long term care planning and risk, yet they are cautious about purchasing coverage because of their fear of unstable premiums. At the core of the matter is the underlying lack of confidence that providers know what they're doing with their products.
It is time to remind everybody about the importance of having a long term care plan. It's undeniable that any given person is likely to one day need custodial care. The overwhelming effect of such an event on both finances and loved ones can be alarming. Long term care services are expensive; the effect of long term care events upon our loved ones can be just as devastating. Most people are quick to acknowledge that they really should do something to protect their money. Many consumers continue to express a desire to lessen the burden for their children, spouses, and other loved ones. Yet despite having these feelings, most are still hesitant to act.
We continue to hear that individuals want their trusted advisors to help them solve these concerns, but too many times, we see that advisors are reluctant to address the topic. Fewer than half (38.4 percent) of people that recently purchased a policy were approached by their advisor about LTC planning, according to a 2010 Mutual of Omaha study. Most were forced to initiate the discussion themselves. This same study revealed that non-buyers are also looking to their advisors for information about long term care planning options – information that has not yet been offered.
Consumers want someone to help them develop a plan for long term care risk – so what is your plan as their advisor to help them meet their goals?
As we reflect upon the past year, we see some positive growth in LTC sales compared with 2009, yet we are still not penetrating the marketplace at acceptable levels. Now is the time for advisors to make plans for 2011. The opportunity to help your clients by initiating a conversation about long term care planning has never been more appropriate, or more necessary.
Scott D. Boyd is vice president of long term care for The National Benefit Corp. He can be reached at 800-275-8622 or [email protected].
