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| Inside this issue |
- Feature Story:
| New LTC poll |
The market needs more affordable LTC products, featuring fewer bells and whistles, higher deductibles and bare-bones daily benefit options.
Take the survey
Note: [ To comment on this topic, just write to the editor]
| The results of last month's LTC poll |
Our question was: The emerging Social Security crisis is likely to have
a strong positive impact on LTC insurance sales.
Our readers said:
Note: These results reflect the views of readers who elected to respond to our poll question. It is not a scientific survey. The numbers do not add up to 100% due to rounding.
| Feature |
How many clients really need long-duration LTC protection?
By Trevor Thomas
Are agents losing sales because they are selling too many long term care
insurance policies offering costly long-term benefits? That could be one
conclusion suggested by a recent Milliman Inc. study that found the vast
majority of LTC claims were for relatively short claim periods.
Some producers accept the finding of the study but dispute that it implies they
should be selling more low-end policies.
[ To comment, click write to the editor.]
Jane Nobiletti, a brokerage manager for Agent Support Group, New York, believes
the findings of the study will become outdated as LTC insurance clients become
younger. “Long term care insurance was once sold mainly to 70-year-olds,” she
observes. “People see what happened to Christopher Reeve and Michael J. Fox
[actors disabled at a young age] and realize bad things do happen to younger
persons.” Now that the product is being marketed to younger people, Milliman’s
findings that only...
| Editorial comment |
The LTC tipping point is approaching
Some years ago, a financial advisor told me she felt especially happy on that
particular day. The reason: “I helped a client, really helped her. She’s
financially okay.” That comment, and the sense of satisfaction that came with
it, is a powerful statement about the intangible benefits associated with
financial advising. But in the last several weeks, advisors have called here
who are on the other side of that happiness. They are worrying about when the
LTC business will get legs. They say:· LTC promotions help, but...
--Linda Koco, Senior Editor, Products and
Managing Editor, e-Publications
National Underwriter Life & Health
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| Letters to the editor |
Letter: Wealthy clients don’t want to divulge their
financials
Kathy Halverson writes: I read with interest your June 2005
editorial comment on doing needs analysis. My client base comprises mostly the
wealthier clients who want choice and independence in their later years. They
have worked very hard for their money and insured everything in the
process—smart move! For me to ask questions about their assets, income, etc.
would...
Kathy
Halverson, CLTC, CSA, is principal of Halverson Planning, LLC, Long Term Care
Insurance and Consulting Services, Green Bay, Wisc. Her e-mail address is:
khalverson@halversonplanning.com.
Letter: Accepting hybrid LTCs will make the insurance
industry stronger
Gregory G. Theis writes: As a financial services professional for
over 15 years, I must comment on those who choose to dismiss or deride hybrid
long term care insurance products. (I prefer to call them asset-based LTC
insurance). If I knew that all of my clients would have to pay for LTC
expenses, I would sell only LTC policies having zero-day elimination period,
$6,000 per month of benefits, and inflation protection. And, my clients would
buy it. However, ...
Gregory G. Theis, CLU, CSA, is an advisor with
Woodbury Financial Services, Homer Glenn, Ill. His e-mail address is
gregtheis@comcast.net.
|
In case you missed these... .
Previous articles from National Underwriter Life & Health publications |
►
Democrat introduces caregiver credit bill
By Allison Bell
NU Online News Service, July 15, 2005 - -A senior Democrat in the U.S. House of Representatives has demonstrated the bipartisan appeal of tax credits for U.S. residents who help provide informal care for frail adults and adults with disabilities. Rep. Robert Menendez, D-N.J., has introduced H.R. 3254, the Caregiver Assistance and Relief Effort bill. The text of the bill was not immediately available, and it was not clear at press time how bill will differ from other LTC tax bills, but Menendez gave a...
Also see:
-
Executive: Private LTC can help save Medicaid - By Arthur D. Postal - June 29, 2005 - Creating an “above-the-line” deduction for people who buy long term care insurance can help the federal government and states reduce the soaring cost of Medicaid, said....click here for entire article
-
NAIFA affiliate pushes for LTC tax break - NU Online News Service, June 2, 2005 - The Association of Health Insurance Advisors is backing a new federal long term care insurance tax, H.R. 2682, which would provide an above-the-line deduction for individual expenditures on LTC insurance premiums and a...click here for entire article
►AARP:
LTC fears cross borders
By Steve Tuckey
NU Online News Service, July 21, 2005 - More than half of the consumers who participated in an international survey sponsored by AARP, Washington, said they were worried about long term care costs. Harris Interactive Inc., Rochester, N.Y., surveyed 4,011 adults between the ages of 30 and 65 between May 9 and June 2. The participants were residents of Australia, Canada, France, Germany, Italy, Japan, Netherlands, Sweden, the United Kingdom and the United States. Although governments in all 10 countries help cover retiree medical costs, researchers found residents of all countries expressed concern about...
►Bay
State regulators to study LTC insurance
NU Online News Service, July 7, 2005 - The Massachusetts Division of Insurance is undertaking a study to find out who’s buying long term care insurance and what kinds of policies they’re acquiring. The study will look at how many people have LTC insurance, their age and average premium levels, according to Christopher Goetcheus, a division spokesman. The study also will look at marketing practices and examine...
click here for entire article
►Tax
officials ask for comments on LTC form
NU Online News Service, July 6, 2005 - The Internal Revenue Service is seeking comments from the public on Form 1099-LTC, the form that taxpayers use to report benefits from qualified long term care insurance policies and accelerated death benefit programs. The IRS is not planning to change the form, but it is putting the form through a...
►Allstate unit to exit LTC
market
By Trevor Thomas
Lincoln Benefit Life Company, a subsidiary of the Allstate Company, says it
will no longer sell long term care insurance policies under its own brand. The
decision, which becomes effective October 31, 2005, will not affect its
existing LTC insurance customers, the company says. LifeCare Assurance, a
third-party administrator that has handled the Lincoln Benefit product since it
was launched in 1997, will continue to service the policies. The decision to
leave the LTC market is part of Allstate’s plan to simplify its lineup with
a...
►Did you know:
-
7 million Americans now own private long term care insurance
-
These policyowners comprise individual buyers and also those buying LTC coverage through plans sponsored by employers and governments (both state and federal)
Source: Report published by Long Term Care Insurance Sales Strategies, July 2005, Los Angeles, Calif.
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