LTCi Industry: Best Days Behind, or Ahead?

[Dick Samson]

What's your opinion?  See this excellent blog post by LTC Guild member Scott Olson:

http://ltcshop.wordpress.com/2010/11/26/ny-times-ibm-stops-selling-...

[Don Burkhead]

The recent announcements by MetLife and Hancock have provided grist for the nae-sayer mill. From a general public conception standpoint, I believe, the near term future for long term care insurance is not positive. Drop outs and large premium increases will be taken as signs that major providers are unstable and not to be relied on. Whether or not we, as long term care specialists know better is not important...it's what the public and other financial professionals believe and right now the tide is going in the wrong direction.

What needs to happen to change the tide's direction. One, I believe the federal and state governments need to get out of (with minor exceptions) the long term care business by restructuring Medicaid/Medical and removing the CLASS Act from the current healthcare reform legislation. The government needs to also take a more active role in confronting misconceptions surrounding LTC and LTCI by enhanced educational efforts. This, along with with tax credits and other financial incentives are necessary to create an improved atmosphere for establishing the credentials for this insurance.

Second, financial/retirement advisors, CPAs, elder care attorney's, portfolio money managers, must become more knowledgeable about and ACTIVE in promoting long term care planning. With notable exceptions, it has been my observation that most financial professionals are unprepared, unwilling and have little interest in adiquately advising their clients about the devastation caused by the lack of this important safety-net within a retirement plan. I would even promote regulations that all those who carry the responsibility of providing financial advice be certified in long term care planning and/or demonstrate that they are affilitated with a specialist in long term care to whom their clients have ready access.

The 78 million Boomers now reaching retirement represent a crises in the making. What will it take to help them take the steps necessary to have quality care when it's needed? I welcome other recommendations that would lead to more accessable, affordable long term care protection.

Don Burkhead,CLTC

[Craig Fenton]

In my opinion the best days for LTCI sales are ahead... but in the simplified issue Multilife market, not in the husband / wife sales arena with full underwriting. We have just scratched the surface of this market and with CLASS & Partnership Programs raising the awareness bar with consumers that the Federal & State Governments are not wanting to pay for this care I see more people & younger people getting plans through their employers. 

We are also seeing this start to become the darling product of the "Golden Parachute" Think about it: Company paid LTC is a tax free benefit, that can be done on a disciminatory basis, with grossed up premiums for 10 pay coverage and Full Return of Premium, high leel of benefits so that home care only is almost guaranteed  and has a tax free benefit and beneficiary payment... what could be more C Class employee and Board of Director friendly? (CEO, CFO, CMO, COO, etc.)

[cheska]

i cant find the article,the site seems down. 

i think long term care insurance would stay as long as there are seniors needing help in paying for LTC services

[George Holmes Braddock, II, CLTC]

Hi Craig, just happened upon your post from 2011. My state doesn't have a 10-pay for traditional LTC. Are you having success with 10-pay hybrids at the worksite? Can they be done as executive carve-out the same as stand-alone?

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