Filed Under:Life Insurance, Sales Strategies

LTC Almanac, part 1

LTCI insider

Q. I want to revise my client presentation. What significant statistics should I include and what benefits are other agents recommending?

A. A great best way to start the new year is to update the information we tell prospects. To accomplish that, this column is divided into two parts.

First is a list of recent facts that we should either mention during the presentation or use when appropriate.

Second is information on the benefits that most agents are recommending. Plus, I will be providing more helpful facts in my next column.

PART 1 - Care facts

  1. About 70 percent of Americans over age 65 will require some type of long-term care services during their lifetime.1 (So the question becomes when and not if!)
  2. 3.9 years - Average length of long-term care claim lasting longer than one year.2
  3. 42 percent of the 13 million people receiving long-term care services are between the ages of 18 and 64.3
  4. Four to eight years - Average life expectancy after Alzheimer’s diagnosis after age 65.4
  5. Alzheimer’s is leading cause of claim from age 65. Cancer is leading cause of claim below age 65.5
  6. Where new claims began in 20125: 
    - 51 percent - Home care; 
    - 18.5 percent - Assisted living; 
    - 30.5 percent - Nursing home. (My conclusion - Almost 70 percent of claimants receive benefits outside of a nursing home.) 
  7. Age 79 - Average attained age at commencement of claim.5
  8. Average length of stay5: 
    - Assisted living facility claims - 958 days (2.6 years).
    Nursing home and home health care - about 700 days (1.9 years).
  9. For the three-year benefit period, only eight in 100 claimants exhausted their policies.5
  10. New claims that opened in 2012 by sex5:
    - 67 percent - Female.
    - 33 percent - Male.
  11. Statistics from the 3in4 Need More Campaign6 :
    - 74 percent of consumers ages 55 to 65 said they are concerned about needing long-term care.6 
    - 77 percent of Americans age 30 to 65 think they should know more about long-term care insurance than they currently do.6 

PART 2 – Benefits Being Recommended5 

  1. 2012 sales by benefit period:
    - 3 years – 31.2 percent.
    - 4 years – 27 percent. 
    - 5 years – 17.4 percent.
  2. 2012 sales by daily benefit amount:  
    - 34 percent - $100 to $149.
    - 35.2 percent - $150 to $199.
    - 14.2 percent - $200 to $249.
  3. Type of inflation protection:
    42 percent - 5 percent compound for life.
    30 percent - 3 percent compound.
    - 9 percent - 5 percent simple.

SOURCES

      1. The Urban Institute, May 5, 2006, & The Congressional Research Service, June 28, 2004
      2. Claims data for Genworth Life Insurance Company and affiliates – December 1974 - December 31, 2012
      3. Georgetown University Long-Term Care Financing Project. "Long-Term Care Financing Policy Options for the Future," June 2007.
      4. 2012 Alzheimer’s Disease Facts and Figures, Alzheimer's Association, March 2012
      5. American Association for Long-Term Care Insurance, 2014 LTCi Sourcebook
      6. 2010 Prudential Long-Term Care Consumer Awareness & Attitudes Study

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