A lot has been said and written about the ideal client profile for long term care insurance. And, one thing that the industry as a whole has been saying loudly is “the best time is when you are young.”
Without delving into the benefits of securing coverage at a young age, the risks associated with waiting, and characteristics of the ideal client, I am going share some thoughts of ways to identify a potential client.
Remember, we can offer Asset Care to age 80 and Annuity Care to age 85. You can find more product information in the Care Solutions Product Guide. Also remember, with Asset Care, clients can be rated table 8 and still be eligible for coverage. Annuity Care is more forgiving from a health perspective. You can find more information about our underwriting parameters in the Care Solutions Underwriting Guide.
Our conversation is going to be focused on the the financial aspect of the client profile. Now, this is a broad subject and there are many different opinions as to where asset based long term care solutions fit.
Generally speaking, a client should have at least $350,000 in assets to consider an asset based LTC product. If your client’s budget is tight or their assets are positioned as the primary income producing engine, then an asset based solution is probably not a good solution.
So, what are you looking for?
Some call it “lazy money”; others call it “the rainy day fund”; I call it non-income producing capital assets. Simply – the money that is NOT earmarked for income. It may be designated as legacy money or an emergency fund or “fun money” (quoting my father) – whatever they call it, it’s likely the money that the client taps into when/if there is a healthcare event.
Ask your client this question – if you fall today, fracture a hip and during your recovery need help bathing, dressing, or getting to and from your favorite chair to watch the Jeopardy and you had to hire assistance, how would you pay for it? Simply – what is the source of that payment?
It could come from income or saving or investments. It could be a combination of all or some of those. Odds are they have an idea how they would pay for care. Simply knowing this is the first step to finding premium dollars. And remember this – Care Solutions can be funded using virtually any asset. Check out our Funding Options grid to see what can be done.
Sure, this is not what you expected – the ideal client for a Care Solutions product is someone who can qualify based upon their health, is 85 or younger, and recognizes the need for a long term care funding strategy.
It’s not as cookie cutter as most people make it, but neither is real life.
Fridays with Fisher 