For the past month, I’ve been hammering hard the benefits of an unlimited duration of benefits. This was prompted by a post that I saw on LinkedIn critiquing agents who present unlimited lifetime benefits. I am changing focus to limited duration benefits.
Every carrier who writes long term care insurance of any type devises plans to accommodate the short and moderate duration events (2 to 5 years). This is what I am going to focus on today – the short duration.
When statistics say that only 20% of LTC claims will be in excess of 5 years, people fixate on that number. Of course, this is based upon reports for facility-based care which does not truly take into account of home-based care. (source: https://www.aplaceformom.com/senior-living-data/articles/long-term-care-statistics)
This, on top of the “average duration of care for a woman is 3.7 years and a man is 2.2 years” myth, creates a mindset where average is acceptable – for both consumers and advisors.
Let’s zoom in on a specific demographic – that is people between ages 70 & 85.
This is a segment of the population that is certainly underprepared to address extended care particularly how they will pay for care. In fact, according to a survey conducted by KFF, 11% of adults said that they have a long term care insurance policy in place; 14% for people 65 and older.
Many advisors and agents are hesitant to discuss long term care with people in their upper 60s and beyond simply because the likelihood of securing a policy is lower than that of a younger person.
That has all changed with the Annuity Care base-only strategy!
The ideal client is someone who is between 70 and 85 with money in nonqualified deferred annuities that is not being used as an income source.
Here is why I want you to direct your attention to this topic.
The average age of an annuity owner is 74 years old. And when you combine the lack of LTC planning (and funding) with the next set of statistics, you will see why this is an opportunity that you need to envestigate.
79% of annuity owners have indicated that one of the reasons for oning an annuity is to not become a financial burden on their family. This goes along with 67% shared that this money is designated as their healthcare emergency fund. (source: https://www.annuity-insurers.org/wp-content/uploads/2023/07/Gallup-Survey-of-Owners-of-Individual-Annuity-Contracts-2022.pdf)
You can provide a tax-free LTC funding solution using nonqualified deferred annuity dollars to your clients by simply answering 5 questions favorably.
To learn more, take a look at this video.
https://p.allego.com/ZfIBtJrW2VAfwIZ
The need is there. The solution is there.
Seize the opportunity and make a difference.
Get even more information by contacting Justin Fox at (844) 658-3725 or justinfox.isp@oneamerica.com or Nick Angelov at (844) 623-4251 or nick.angelov.isp@oneamerica.com
Fridays with Fisher 
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