The Advisor's View of Long-Term Care Planning

Is long-term care insurance "sold" or "bought?"

Posted by Tom Riekse Jr | Apr 7, 2015 11:13:00 AM

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The answer, of course, is yes.  LTC requires a buyer who can pay premiums but it also requires a person who is licensed to sell the coverage as well.

The real question is who brings up the topic of planning for long-term care and long-term care insurance?  Is it the consumer or advisor?  

It depends who you ask!  According to a recent Investment News survey of advisors on LTC planning, 75% of the advisors polled said they were the one who initiated the conversation on LTC planning.  They also expressed an interested in more sales and product training.  Most are very optimistic about future sales opportunities, but would like more affordable products.  Linked product sales have been very positive for long-term care insurance.

How did advisors frame the long-term care insurance buying decision?  Here's a chart of the best selling points:

main_selling_points

On the other hand, when buyers of long-term care insurance were asked who brought up the topic of long-term care planning, they claim they did - and not by a small margin.  According to major carrier research that took place in October, 83% of consumers said they were the ones who initiated the planning conversation!

Consumers also claimed to do a lot of research online prior to reaching out to a seller of LTC.  They wanted to know about the price of coverage first.  In addition, about one-third of consumers in their 40's researched and bought online compared to those in their 50's who met face to face with an advisor.

So why the disparity in the perception of the buyers and sellers?  More research will have to be done..  One guess would be that since planning for LTC is not easy, both sides would like to take credit for being smart in seeking coverage or recommending it. 

From a practical perspective, the important thing is that a discussion is taking place - and only the educated will take action to prepare.

Interested in learning more about Linked Life/LTC products? Check out our special report on working with these products.

Download Linked Life/LTC Guide

Topics: For financial professionals, Advice articles about planning

Written by Tom Riekse Jr

Tom Riekse, Jr., ChFC, CLU, CEBS is the Managing Director of LTCI Partners. He has been working in the long-term care insurance business since 1991 with an emphasis on communicating the value of LTC planning to advisors, employers and consumers. He has primary responsibility for all marketing and technology initiatives at LTCI Partners, and has worked closely with carriers and vendors to make LTC Insurance easier to sell and enroll. Tom received his undergraduate degree in from Hope College, Holland Michigan. He subsequently achieved his MBA at the University of Illinois at Chicago, with a concentration in finance and marketing. He holds the Certified Employee Benefit Specialist designation from the International Foundation of Employee Benefit Plans and the Wharton School and his Chartered Financial Consultant from the American College.

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