A long-term care insurance claims tsunami is on the horizon.
This critical warning resonated recently at the national ILTCI Conference in Philadelphia.
More than 1,000 long-term care professionals attended this annual event, which featured 49 workshops.
For many attendees, the conference provided a valuable opportunity to reconnect with longtime colleagues. The LTC industry locks financial professionals in: Very few people leave the field once they enter it.
The Claims Tsunami
Conference Chair Jeff Levin opened the proceedings with the insight that the LTC industry is in the business of "courage conversations," and that providing and gaining LTC knowledge represents an ongoing journey.
An "LTC claims tsunami" session highlighted startling statistics.
◆ More than 10,000 people are turning 65 each day.
◆ More than 7 million people are covered by stand-alone LTC insurance.
◆ 80 to 85 is the average age range for claims.
◆ In 2023, issuers of LTCI insurance paid $16 billion in claims.
◆ In 2039, issuers could pay $42 billion in claims.
◆ Care costs have been increasing dramatically. (Between 2020 and 2024, home care costs rose 65%).
The claims tsunami panel included Jennifer Jones of Genworth, Sharon Reed of Illumifin, Linda Jahnke of Jahnke Consulting, Jon Thomas of Amada Senior Care, Claude Thau of BackNine Insurance, and moderator Bill Comfort of Comfort LTC.
Navigating the Claims Process
Who receives the initial contact about claims? Typically, it's the agent who wrote the policy or the client's financial planner.
As agents, our primary role is to serve as translators.
The panel provided excellent advice for helping clients navigate the claims process:
◆ During the policy delivery meeting, explain benefit qualification criteria, including the need for the insured to need help with two "activities of daily living."
◆ Encourage filing claims earlier rather than later in the care process.
◆ Advise families to designate a single contact person to work with the insurance company.
◆ Approach the situation as entering into a partnership with the carrier.
◆ Encourage clients to proceed with the attitude that "we are in this together" rather than adopting a hostile stance.
◆ Stay connected with clients throughout their care experience.
◆ Build a local network of LTC resources, including care coordinators and care providers.
My Experience
I filed LTCI claims for my own mother, who used her policy for home care intermittently from ages 90 to 99, and, more recently, for my husband.
The initial claims required the most time and effort; subsequent claims proceeded much more smoothly.
Margie Barrie, an agent with ACSIA Partners, has been writing the LTCI Insider column since 2000. She is the author of two books and a frequent conference speaker.
Credit: Kacso Sandor/iStock
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