LTCI paralysis

Millions of prime candidates for long-term care insurance are suffering from temporary paralysis, and it doesn’t look like it’s going to clear up any time soon. These candidates are playing the waiting game, and will do so indefinitely until some sort of clarity becomes apparent regarding health care insurance reform and the Community Living Assistance Services and Supports (CLASS) Act of 2009.

By and large, consumers have little idea what’s going on right now regarding what may or may not be covered by a government program when it comes to long-term care in the future, and it has led to a precipitous drop in sales of LTCI policies. What motivates people to buy a private policy when the possibility exists that CLASS or national health care reform may include a long-term care element which may (or may not) apply to them? Nothing.

These millions of candidates will continue to wait it out, and in the meantime agents are met with stonewall resistance. The top three objections consumers have to purchasing LTCI remain, 1) that it is too expensive; 2) procrastination; and 3) they don’t see the need for it.