Reassure your clients: The LTCI sky is not falling

When I started selling long-term care insurance in 1990, many carriers had products. I realized, ultimately, the number of companies offering this product would decrease, and rate increases were inevitable. I told my clients to expect rate increases. If they’re going to hold a policy for 20, 30 or even 40 years, then premiums are going to increase. The bottom line is it isn’t a surprise.

What can you tell your clients to reassure them? Here are suggestions from LTCI experts.

• “This coverage is important and necessary as more people are using it for longer periods of time than originally projected. Future products are likely to be more restrictive in order to properly manage the risk. The risk isn’t going to go away; it’s just going to grow. Planning for your care while you’re healthy enough to qualify makes more sense than ever.” -Mark Goldberg, ACSIA Long Term Care
• “As with any health insurance product with growing utilization trends, expect premium rate increases. It is not a matter of if but when. The need for LTC planning is growing. LTC insurance will continue to be the most economical risk management solution for most people.” -Mike Skiens, MasterCare Solutions, Inc
• “This is part of the life cycle of all insurance products. Companies go in and out of the industry, and prices go up. When is the last time your homeowner’s and health insurance didn’t go up?” -Bernie Barrie, Benefit Services International
• “These policies are all ‘guaranteed renewable,’ so as long as the client is buying from a stable carrier, that policy will remain in force and claims will be paid as long as premiums are kept up to date. People still need an LTC solution. Medicaid will not be able to support their needs.” -Peter Gelbwaks, Gelbwaks Executive Marketing Corp.

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