Reaching the Missing 90%

[Dick Samson]

Only about 10% of those who could benefit from long term care insurance have it. How can we reach the other 90%?

What can we do individually, organizationally, and as an industry to spread the word? Or to make it an economic must-have, like health insurance or auto insurance?

[Walter Baker]

It would be nice if people HAD to have it, by law, like auto insurance. Little chance of that, but maybe we could lobby for more federal & state incentives so it's obvious you're crazy if you DON'T have it.

[Elizabeth D. Swart]

What if I cannot pay the health insurance plans because I am facing financial difficulties?

[Bill Berry CLTC]

The entire industry could work together to have an ongoing national media/educational/public relation/ type campaign to promote/encourage this 90% to investagate if LTCI makes financial sense for their situation. To teach them what could happen and the consequences thereof.

This could possibly be funded somehow by all parties involved in this industry. Insurance providors, care providers etc. A generic message about the risks of long term care expense. It would not be company/policy design specific. It would just push education of this matter to the public.

Possibly an organzation such as "The National Long Term Care Counsel" or something?

Comments please.

[Dick Samson]

I like your idea, Bill.

[Sharon Lennox]

Bill Berry CLTC said:

The entire industry could work together to have an ongoing national media/educational/public relation/ type campaign to promote/encourage this 90% to investagate if LTCI makes financial sense for their situation. To teach them what could happen and the consequences thereof.

This could possibly be funded somehow by all parties involved in this industry. Insurance providors, care providers etc. A generic message about the risks of long term care expense. It would not be company/policy design specific. It would just push education of this matter to the public.

Possibly an organzation such as "The National Long Term Care Counsel" or something?

Comments please.

that sounds like a great idea!

[Romeo Raabe LUTCF, LTCP]

I think getting the states to promote the Partnership as it becomes available would be immensely helpful. Indiana lost 6 years by not promoting it, and nobody knew about it til they started. Promotion (news releases, etc.) does not cost the state or feds much, but can save billions. It also will create public awareness.
www.RetirementChoices.net/rraabeLTC1.html

[Dick Samson]

Romeo Raabe LUTCF, LTCP said:

I think getting the states to promote the Partnership as it becomes available would be immensely helpful. Indiana lost 6 years by not promoting it, and nobody knew about it til they started. Promotion (news releases, etc.) does not cost the state or feds much, but can save billions. It also will create public awareness.
www.RetirementChoices.net/rraabeLTC1.html

Can you (or any other LTC Guild member) supply calculations of HOW MUCH a given Partnership state, such as Indiana, might save in what time frame? We might use this in a news release to help that state, and the other Partnership states, develop support for budgeting some of their Stimulus money for the relatively-inexpensive promotion you suggest.

[Scott A Olson]

Dick,

All 4 of the original partnership states report regularly (usually quarterly) about how many partnership policies were purchased, how many are still in-force, how many are on claim and how much was paid in claims on those policies, and how many exhausted their policies benefits and went on Medicaid. It's all public info.

Scott

[Scott A Olson]

Dick,

There are about 70 million Baby Boomers. I think that less than 10% of them own LTCi. But, I think it's a mistake when agents start to talk about "everybody needing LTCi". I've heard some agents say that they thought that LTCi should be "as common as auto insurance and homeowner's insurance."

When an agent starts to think that LTCi is "for everyone", that agent is going to try to sell LTCi to someone who should not need it.

Let's face it, for someone who is not retired yet, LTCi is NOT as high a priority as other types of insurance: medical insurance, long-term disability insurance, and life insurance (for those with dependents). Additionally, I don't think someone should consider owning LTCi if they are not adequately contributing to their retirement accounts each year.

Once those higher financial priorities are in place, then someone should consider LTCi.

But, there are even many people who are retired who should not own LTCi. If someone can easily qualify for Medicaid, they probably should not own LTCi. I don't have the figures, but I would bet that more than half retirees between the ages of 60 and 75 should not own LTCi because they could easily qualify for Medicaid.

It is important for us to tell someone who should own LTCi that they should own it. But, I think that it is just as important for us to tell someone who should NOT own LTCi, that they should NOT own it.

[Steve Eads, CLU, CLTC]

Agreed, not everyone should own LTCi. However, I do believe the "seasoned" agents above likely consider that needs-based selling is a given and a standard practice by most LTCi agents these days. However, the issue is still at hand and I believe people like agent Bill Berry, LTCi advocate Steven Moses and other true veterans of this industry also understand that the current numbers of LTCi agents and carriers simply cannot get the word out sufficiently to reach the masses...as does Life, DI, Maj Med, Med Supp's...all more "recognized" needs than LTCi. I firmly believe there are simply not enough carriers in the LTCi marketplace to make a large enough dent in public "perception" for LTCi need. More carriers = more national advertising dollars = more agents promoting and selling the product. If it get's any simpler than that...please, do tell!!!

[George Holmes Braddock, II, CLTC]

I agree Scott, with the caveat that when we identify someone who would likely be eligible for Medicaid LTC, we not forget to explore the possibility of family members paying for a policy.

Scott A Olson said:

Dick,

There are about 70 million Baby Boomers. I think that less than 10% of them own LTCi. But, I think it's a mistake when agents start to talk about "everybody needing LTCi". I've heard some agents say that they thought that LTCi should be "as common as auto insurance and homeowner's insurance."

When an agent starts to think that LTCi is "for everyone", that agent is going to try to sell LTCi to someone who should not need it.

Let's face it, for someone who is not retired yet, LTCi is NOT as high a priority as other types of insurance: medical insurance, long-term disability insurance, and life insurance (for those with dependents). Additionally, I don't think someone should consider owning LTCi if they are not adequately contributing to their retirement accounts each year.

Once those higher financial priorities are in place, then someone should consider LTCi.

But, there are even many people who are retired who should not own LTCi. If someone can easily qualify for Medicaid, they probably should not own LTCi. I don't have the figures, but I would bet that more than half retirees between the ages of 60 and 75 should not own LTCi because they could easily qualify for Medicaid.

It is important for us to tell someone who should own LTCi that they should own it. But, I think that it is just as important for us to tell someone who should NOT own LTCi, that they should NOT own it.

[cheska]

If you do this by law, then there will be a lot of middle-class who will against this. 

i think we can reach out if organizations and government will educate people about the risks of procrastinating for their future care. and yes, this can be done thru campaigns and collaboration from various long term care insurance agencies