Sep 24, 2014 | By Barbara J. Stahlecker
“LTCI is dead,” a financial planner told me recently.
“Really?” I asked. “Why would you think that?”
“What do you do about the clients who can’t afford to plunk down $100,000 for a policy? Or clients who can’t qualify? Or clients who want a Partnership policy?”
Long-term care insurance (LTCI) is not dead. What is true is that the industry is down this year. By some accounts as much as 32 percent. I believe there are a few factors responsible for this drop, and we who sell LTCI have all played a part in it. Let’s take a look at what’s happening and see if we can’t collectively reverse the trend by slightly changing our behavior.
First, more applicants are getting declined.
This is due to a combination of two things: Underwriting has tightened up and more applicants are waiting until there is already something wrong before they apply for coverage.
When an agent calls me for a quote on a 74-year-old female who “is in great health except for some blood pressure medication,” I know there is already a problem. No one wakes up at 74 and says, “I think I’ll buy some of that long-term care insurance” unless they are already facing some kind of care event. So, overall, the folks who want to buy the coverage can’t qualify.
Second, the ones who can qualify aren’t buying
We all know the perfect age for buying LTCI is 50s to early 60s. So why aren’t they clamoring to buy?
Here's a look at three reasons for the slowdown -- and five ways to respond.
Read the rest at http://www.lifehealthpro.com/2014/09/24/5-ways-to-kill-the-ltci-slump