The effects reverberated in Philadelphia recently at this year's national ILTCI Conference.
Just 20 years ago, most long-term care planning products discussed at the ILTCI conferences were stand-alone traditional long-term care insurance products.
Since then, the long-term care insurance market has shifted dramatically.
The number of traditional LTCI policies sold dropped from 750,000 in 2000 to just 34,542 in 2023, and traditional LTCI policies accounted for just 7% of 2023 LTC planning product sales.
Insurers sold 468,731 combination products in 2023, up from a much smaller number in 2000.
The combination products included hybrid life policies with extension-of-benefits features, life insurance policies with LTC riders, and life insurance policies with chronic illness riders.
Representatives from both hybrid and traditional carriers talked about the shift during a session on the state of the LTC industry.
The panelists were Joseph Laskowski of CareScout, Jennifer White of John Hancock, Brian Kendall of OneAmerica, MacKenzie Madsen of Lincoln, Scott Limes of Nationwide and Larry Nisenson of Assured Allies, with Ramona Neal of Living Benefit Review moderating.
Consumer needs: The panelists also emphasized that providing a better customer experience is paramount.
They talked about targeting younger customers; recommending affordable plans that cover a portion of clients' needs, rather than trying to get every client to pay for comprehensive coverage; and using wellness programs to help the people with the coverage live independently longer.
Product trends: The panelists said some of the product trends they see include a shift to products that pay a cash indemnity benefit, rather than products that reimburse claims; growing interest in joint life hybrid products; and more use of extended payment periods, rather than single-premium arrangements.
The tools: Technology has transformed the underwriting process.
Today, the panelists said, digital interviews with applicants are replacing live assessments.
Interestingly, to accommodate the customers' schedules, most of the digital interviews now take place at 9 or 10 p.m.
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.
One take away from the recent ILTCI Conference in Philadelphia is the strength of the combination product market. Credit: Margie Barrie
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