It’s no secret that a number of economic pressures have created a challenging environment in the long-term care insurance (LTCI) market and forced some carriers to make difficult business decisions.
Market exits. Hefty premium increases. Adjusted policies that limit coverage.
It’s easy to see why these attention-getting topics have recently been grabbing news headlines. Unfortunately reports of these market adjustments are creating the perception that the LTCI industry is declining and the market is shrinking. On the contrary, there is still a lot of potential for agents and consumers in LTCI. The trick is finding the right carriers who are committed to offering quality products and growing the industry.
For example, let’s look at the state of California. It has had multiple LTCI carriers exit the state in the first half of this year alone, yet there is plenty of opportunity in this market. There have also been carrier entries and re-entries into the state this year, and there are many viable, competitive and affordable options for those looking for coverage.
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And while the market may be changing, the need for LTCI remains. The number of California residents over the age of 65 is expected to nearly double to 8.3 million people by 2030, according to the California Health Foundation. Most of those seniors will need long-term care at some point in their lifetimes.