Did you know that November is traditionally Long-Term Care Insurance Awareness Month sponsored by the American Association of Long-Term Care Insurance (AALTCI)? There are a number of reasons to focus your efforts on LTCi sales during November. Start by downloading 4 Compelling Reasons to Add Long-Term Care Insurance to Your Practice. Then consider these additional benefits.
Clients want to talk with advisors about long-term care
The two top concerns clients have about retirement are sufficient savings to support a desired lifestyle and the increasing cost of post-retirement health care, which includes long-term care expenses. Nationwide Financial’s 2015 Fourth Annual Health Care and Long-Term Care Study reveals 53 percent of surveyed pre-retirees want their financial advisor to raise the issue of health care costs in retirement and offer solutions to mitigate the impact to the retirement plan. Yet only 10 percent have actually had an advisor initiate the conversation.
Long-term care insurance increases advisor credibility
Many consumers are misinformed about the current and projected future costs of long-term care. They may mistakenly believe that Medicare will cover long-term care expenses, which it does not. Clients who have talked with a financial professional knowledgeable about long-term care feel confident about the accuracy and quality of advice. In fact, 73 percent felt the advisor is well-informed about long-term care costs.
Increase revenue
LTCi compensation is very attractive. Just three or four new cases can easily add $10,000 of income. If your practice is affected by the DOL Fiduciary Rule, this is one line of business that is not subject to the Best Interest Standard. Yet it is impossible to plan for retirement savings accumulation and distribution without addressing a very real threat to the plan. Make long-term care planning an important part of distribution planning.
Begin with the typical client
Ready to get started advising clients on the second largest and uncertain expense faced in retirement? Begin with female clients who are early-to-mid-50s. Women are the most likely to need long-term care. They generally outlive their partner, to whom they may have served as the primary caregiver. On average the cost of care for a woman, at $180,000, is twice as much than for a man at $90,000. LTCI – Profile of the Ideal Client depicts other demographic characteristics that will help you better identify who to approach first about long-term care needs.
This month, create an awareness in your practice and with your clients about the need to plan for long-term care. Throughout the month, DIS will support your efforts to increase your LTCi sales. Next time, we’ll explore resources available to inform clients of the cost of long-term care. Call us for quotes, product background, and other ideas to get started in the long-term care market.