Filed Under:Health Insurance, Ltci

The future of LTCI: Options, opportunities and urgency

It’s November, and Long-Term Care Awareness Month is well underway. Thanks to the efforts of organizations such as the American Association of Long-Term Care Insurance (AALTCI) and the LIFE Foundation, not to mention long-term care (LTC) carriers, more advisors and consumers are aware of the need for LTC planning.

In fact, the U.S. Senate even convened an LTC Commission this summer to make recommendations on how to deal with long-term care (or the more awkwardly named “long-term services and supports”) in the country. One critical part of that commission discussed how to finance long-term care. Not surprisingly, the answers split along ideological lines, with some of the commissioners supporting a new entitlement program and others promoting private financing.

Fortunately, once those advisors and policyholders find out what a new policy costs today (which is much higher), they normally are willing to pay the increased premium.

From a plan design perspective, LTC policies no longer offer the popular “lifetime” benefit that was loved by consumers and feared by carriers. The most up-to-date products today allow a purchaser to select a total pool of money, say from $100,000 to $1 million. That pool can be used in the future for care, up to monthly withdrawal limits either expressed on a percentage of the pool basis or a monthly maximum.

In addition, linked policies work as a form of leveraged self-insurance. The policyholder is accessing the premium deposit first, through the acceleration of a benefit rider, before accessing the extension of benefit riders.

What are upcoming trends with these products? Although the current plans are mostly single-premium policies, there are more policies that are multi-pay plans, such as a 10-pay plan, that are becoming available.

Featured Video

Most Recent Videos

Prospects not listening to voice mail? Arrange a phone date


Redesigning your phone life is more important than finding the “best words” for a voice mail in today’s culture.

Behind the scenes with Vicki Gunvalson [VIDEO]


In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI


Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's


An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Related resources

More Resources


Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.