Last week, I shared my opinion that we need to stop battling over which product design is best along with which claims payment methodology is superior. You know the stuff that we battle over inside the product ring.
I also stated that we need to put our focus on planning.
I’ve put some thought into this and continually return to the position that we have always had. We (advisors and the industry as a whole) need to be educating our clients about long-term care and the impact that it can have on their lives and the lives of the people around them.
This is nothing new. It’s what we’ve been trying to do this for decades.
If this is what we’ve been doing for decades, then why are statistics showing that despite the increasing age of the American population – LTC insurance sales are not following?
According to a report from the Federal Reserve Bank of Cleveland, “only 10 percent of Americans age 65+ own a private LTCI policy, and the number of individuals with such a policy has been falling steadily since 2021.”
Certainly, part of the decline can be attributed to economics. A large chunk of the population cannot afford to purchase a policy simply because they live paycheck to paycheck. However, I would argue that this segment of the population still requires education about long-term care, LTC planning, and what their course of action needs to be when they need care.
Some people are impacted by their health. Simply, they cannot qualify for any products due to exisiting health concerns. Again, we may not be able to provide a long-term care product solution but education and a planning conversation could still be beneficial. How will they address their situation when it occurs?
Many others will be considered “too old” for insurance. They may not be.
My point is this. We have an education issue with long-term care planning. Consumers haven’t received adequate education about what a long-term care situation would do to them, their family, their legacy, and their financial well-being. It’s time that we decide to include long-term care planning in every client conversation.
And, remember this, for every person that requires care – there is a family that is impacted by that situation. It’s time to start educating.
Here are a few resources from OneAmerica Financial that you might find to be useful:
Step by Step Guide to Receiving Long Term Care (consumer approved)
Care Planning Worksheet (consumer approved)
Document Worksheet (consumer approved)
In addition to these consumer pieces, there is a variety of other consumer educational material including workshops and other associated materials. For more information, contact my internal Kelley Hilliard directly at (844) 623-4251 or via email at kelleyhilliard.isp@oneamerica.com
Fridays with Fisher 