Editor’s note: The following is an excerpt from “In it for the Long Term,” the Producer Roundtable feature in the December issue of Life Insurance Selling. To read the complete article, click here.
Moderator Charles K. Hirsch, CLU: For many years, people have predicted that long-term care insurance sales would skyrocket, owing to the wave of baby boomers who are aging. Yet, to date, that huge increase of sales really hasn’t happened. In your view, why hasn’t it happened, and what needs to change in order for those sales to start materializing?
Matthew D. Brotherton, CLTC: Consumers and most financial professionals do not have the proper education when it comes to LTC issues. It seems like LTC gets buried in magazines, newspapers and other financial journals that consumers read. Producers are afraid of bringing another professional who knows LTC insurance to meet with their client, so instead they bypass the subject. I feel that in the next several years, LTC insurance will become more prominent as more consumers will have personal experiences. They’ll realize the government is not able to protect them, and they’ll need another source for protecting their assets.
Arthea S. Reed, Ph.D., CLTC: I think there are many reasons:
1. The product was misnamed. No one wants to think about going to a nursing home and most people think of LTCI as nursing home coverage when actually the opposite is true.
2. The perfect storm caused by unrealistic pricing, increased premiums and companies exiting the market have made prospects very cautious.