Perhaps The Market Has Spoken

Americans know that retirement, sickness, accidents, and death are certainties in life, yet, somewhat shockingly, few actually plan proactively for them.  One of the most often overlooked topics is Long-Term Care Planning, and while there are numerous reasons for this fact, cost certainty (or lack thereof) seems to be a consistent obstacle for consumers and advisors to overcome.

In the past, Long-Term Care planning meant identifying an appropriate Long-Term Care insurance policy, buying that policy, and keeping it until was needed. However, for those considering this option today, the headlines highlight a flawed history built on a lack of cost certainty…..Below are examples of what was happening throughout the marketplace:

Federal long-term care premiums rising by triple digits

Genworth Plans to Raise Some LTCI Rates 50%

CalPERS Considers 85% Rate Hike for Most LTC Policies

Planning Solutions With A Stronger Value Proposition

Planning for retirement is difficult enough without trying to predict how the cost of Long-Term Care insurance - potentially rising significantly over time - will impact that planning. Some will disagree with me and way there is "rate stability" now for LTC insurance products in the market....and that's great, unless there are comparable solutions offering consumers a rate guarantee!! 

Recent 2016 premium statistics from LIMRA below illustrates today's reality.....

Traditional Long-Term Care insurance may be an appropriate solution for some people, but the stats don't lie.....According to the LIMRA report, "while we don’t expect to see a rise in individual LTCI sales soon, combination products are a great way to fill the gap that declining individual long-term care insurance sales has left."  

Consumers and advisors understand the need for Long-Term Care Planning, however it's becoming evidently clear the next (and maybe only) logical step in the planning process is selecting alternatives to traditional LTC Insurance. Asset-based solutions for LTC Planning - on either an Annuity or Life Insurance chassis - is where the market is trending, so based on the data the market has - in fact - already spoken.  

Click here to read the Nov. 2017 LIMRA report on the LTC Market