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Life Health > Long-Term Care Planning

20 ways to impress LTC planning prospects

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Margie Barrie, a veteran long-term care insurance (LTCI) agent, marketer and educator, has been writing articles about long-term care (LTC) planning and related issues for many years.

Here, she offers LTC planners fresh data for their information toolbox.

Want to impress prospects with your LTC and LTCI knowledge?

Here are 20 facts to help you accomplish that, in the latest edition of the LTCI Insider annual information update.

For helpful facts for the New Year, read on. 

Client meeting

For use during client presentation

1. 73 percent of claimants are receiving benefits outside of a nursing home:

  • 49 percent: Home health care.

  • 24 percent: Assisted living.

  • 27 percent: Nursing home.

2. 21 percent of claims are expected to last five years or longer.

3. What are the odds of needing long term care?

  • 58 percent of men ages 65 and over will need care, for an average of 2.2 years.

  • 79 percent of women ages 65 and over will need care, for an average of 3.7 years.

4. Assisted living facility, average length of stay: 21 months. 

See also: When your client asks a claims question…

Dollar puzzle

For putting basic policy cost and benefits information in context

5. The average premium for a stand-alone LTCI policy is $2,400. That’s 3 percent higher than it was a year ago.

6. 92.3 percent of buyers are buying policies with elimination period of 90 to 100 days. 

See also: 4 things you should know: LTCI paramedical exams


For clients who want to dive deeper

7. Medicaid: $117,240 is the maximum amount of assets that the federal government will let a healthy spouse keep before the other spouse can be eligible for Medicaid long-term care benefits. (Many states set the cap at a lower level.)

8. Lapse rate for LTCI policies:

  • 1 percent is the estimated lapse rate for stand-alone LTCI policies.

  • 0.5 percent is the estimated lapse rate now being used by Genworth in its projections.

9. 4.5 years is the average length of time someone lives after being diagnosed with dementia.

10. Claims length:

  • 42 percent of claims last less than one year.

  • Claims lasting less than year are usually for home health care and caused by falls.

  • The average length of claim that lasts more than a year is four years.

11. Claims: How much?

  • $7.5 billion of LTCI claims were paid in 2013.

  • Over $5.2 million was paid each business day.

  • 273,000 people received benefits.

12. Claims: Who’s getting the benefits?

  • 71 percent of the benefits dollars are paid to female claimants

  • 51 percent of the benefits are paid to claimants with mental disorders, including dementia.

13. Claim records (from Genworth):

  • 27 is the age of the youngest person to go on claim.

  • 103 is the age of the oldest person to go on claim.

  • About 20 years is the length of the longest claim.

  • $1.3 million is the amount of benefits paid in connection with the biggest single claim.

See also: Explaining LTCI rate increases

Drafting tool

For planning your own marketing strategy

14. Buyers’ use of the Internet:

  • 69 percent of buyers will go to the internet before and after the sale,

  • They are going to an average of six sites.

  • Internet leads convert at a higher rate than direct mail leads because these prospects are being proactive about researching and are in a buying mode.

  • Direct-mail leads are having a 1 percent response.

See also: 2 ways to increase LTC product sales

Shopping cart

For understanding the sales reports

15. Industry sales:

  • In 2013, 470 individuals bought policies per day.

  • In 2014, this was down to 350 purchases per day.

16. Age of buyers:

  • 24.7 percent are between the ages of 45 and 54.

  • 54 percent are between the ages of 55 and 64.

  • 57 is the average age of applicants.

See also: 5 steps to deal with LTCI declines

Three women in front of an elevator

For elevator speeches — and for reminding yourself why you continue to sell LTCI

17. In 2011 and 2012, 67 percent of nursing home residents were female.

18. The number of people using long-term care services:

  • 15 million: The number of people in the United States using nursing homes, alternative residential care or home-care services for LTC needs in 2000.

  • 27 million: The number of people in the United States who are projected to be using nursing homes, alternative residential care or home-care services for LTC needs by 2050.

19. Demographics:

  • 40.2 million: The number of Americans ages 65 or older in 2010.

  • 88.5 million: The projected number of Americans ages 65 or older in 2050.

20. Burden on unpaid caregivers:

  • 80 percent of long-term care is provided by unpaid caregivers at home.

  • 67 percent is the approximate percentage of unpaid caregivers who are female.

  • 67 percent of the people who plan to have a loved one provide care, haven’t asked the loved one.

 See also: Roz Chast: Caregiver lit


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