In today's market, there are a variety of ways to implement a client's long-term care (LTC) plan, including traditional LTC insurance (LTCi), Hybrid Life/LTC products and life insurance with an LTC or Chronic Illness rider. All too often though, public forums and social media discussions about Hybrid or "Linked-Benefit" LTC solutions bring out proponents of traditional LTCi who they tend to twist the narrative.
They like to say that large amounts of money - or a Single Premium - will be needed to implement a plan and how that's a bad idea. Unfortunately, that shows either blatant ignorance or extreme product bias, as it's simply not accurate.
We have prepared the table below to show how various LTC planning solutions compare to one another, and how an Annual-Pay hybrid solution may be a very good choice for clients who want an economical, continuous-pay option......
In 2017, according to LIMRA, "products with 'recurring premium' payments, or multiple premium payments, accounted for 89% of the life hybrids sold, up from 61% in 2011." Even so, many proponents of LTCi won't discuss alternative "pay-as-you-go" options available today. The question is WHY?
Perhaps it's their inability to have an honest discussion about these options because (1) they don't understand them or (2) it destroys their narrative that LTC insurance is the only option for a continuous-pay solution. In any event, avoiding the topic is done at their own risk, as the market for Hybrid LTC planning solutions cannot be ignored by anyone who considers themselves a professional or specialist in this space.....
Quite simply the last the seven years seen the market for Hybrid LTC planning solutions continue to grow. Conversely, the acceptance of these consumer-friendly alternatives has also had a significant impact on traditional stand-alone LTCi. For those who still think or feel traditional LTC insurance offers value to consumers, or Partnership qualified plans should be the focus of discussion or that tax-deductible LTCi premiums are important to consumer.....we have a very simple reply:
THE MARKET doesn't care what you "think or "feel".....PERIOD .....and the sales numbers for THE MARKET provide the proof.
As the market continues to expand the offering of client-focused LTC planning solutions, make sure you are prepared to discuss these options with clients. If you need help, please don't hesitate to contact us to discuss your case.