Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Life Health > Life Insurance

LTC Producers Report Mixed Sales

Your article was successfully shared with the contacts you provided.

Sales of long term care insurance policies are down for 29% of the LTC producers who participated in a recent online survey but up for 27%.

The Association for Long Term Care Insurance, Westlake Village, Calif., and Agent Media, a division of Summit Business Media L.L.C., Erlanger, Ky., the parent of National Underwriter Life & Health, have published those figures in a summary of results from a May survey of about 400 agents.

Although 7% said their LTC product sales had been down substantially over the previous 12 months, 5% said their products had increased substantially. About 22% said sales were down somewhat, and 22% said sales had risen somewhat. Sales remained about the same for 45%.

In May, producers were upbeat about the coming year, with 68% expecting LTC insurance sales to rise in the next 12 months–and 19% predicting volume would be up substantially. Just 4% thought sales would fall, but of these, none thought the decrease would be substantial. The remaining 28% thought LTC sales would hold steady.

Asked to identify their biggest problems with selling LTC insurance, 71% cited clients’ belief that they could not afford it, 57% blamed client procrastination and 54% blamed clients’ belief that they did not need the product.

Other challenges cited: Finding qualified prospects or new clients (38%), clients not understanding the product (15%), carrier rate increases (14%) and a difficult underwriting process (13%).

The most desirable feature for clients in evaluating an LTC insurance product,

according to 35% of producers, is any feature allowing the beneficiary to stay in the beneficiary’s own home as long as possible.

Other findings:

- 31% of the producers said they had LTC insurance clients who were currently collecting benefits from their policies, up from 23% who said they had such clients in 2009.

- 61% of the producers said they mostly sold policies covering actual LTC expenditures, vs. 39% mostly selling policies providing cash payments following an LTC event.

- 53% said they had sold no combination products (annuities or life insurance with LTC riders) in the past year, down from 62% who had not sold such products in 2009.

- 72% said they expect to sell a life or annuity policy offering LTC benefits in the next 12 months, up from 54% who said so in last year’s survey.

- 41% said they were selling LTC policies from only one or two carriers, and 19% were selling policies from five or more carriers.

- 74% said LTC insurance sales accounted for 10% of their annual income or less.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.