Help Clients Hedge Their Risk
Highlighting the cost of care can be a powerful, yet non-threatening way to engage clients in a Long-Term Care (LTC) planning discussion. It also can provide a convenient starting point for designing a policy that will meet your client’s needs and budget.
Since the future estimated average cost for multiple years of care can be quite high, it’s important that both you and your client don’t view LTC Insurance coverage as an all-or-nothing proposition.
Highlight The Cost Of Care
First, discuss with your clients where they would like to receive care should a Long-Term Care event arise. Based on their response, show them what the estimated cost of three or more years of care is today and in the future.
We can help you and your client explore the cost of care, including:
- Current costs for Long-Term Care for all areas across the country
- Estimated costs for LTC events lasting 1-10 years
- Projected future costs for Long-Term Care based on inflation
Develop a Strategy
Once your clients have seen the financial impact that a long-term event can have on their assets, help them develop a strategy to insure some or all of the risk. Base your plan design on what you know about your client’s financial goals, and adjust your recommendations based on their budget concerns.
Some clients may be willing to insure part of the risk by paying a portion of their future expenses out of pocket. Others may prefer to protect all of their assets, to ensure a spouse/partner’s financial well being or to leave a legacy to their children. In either case, LTC Insurance can provide a significant level of protection.
Manage the Premium
You have a surprising amount of flexibility when designing an LTC Insurance policy. If you start with a policy that accounts for your client’s total estimated future cost of care, be sure to consider alternate plan designs that help to lower the premium, if needed.
Consider this approach:
If you started with a longer benefit period and compound inflation, consider shortening to 3-5 years to save money, while still providing ample coverage for most care needs. Leaving off compound inflation protection can make a big impact, potentially cutting the premium in half. With this strategy, consider a higher initial daily benefit to account for future cost of care increases.
Become a Resource
Become a “cost of care” expert in your community. Leverage us as a point of reference in your prospecting efforts. After seeing the potential impact that an LTC event can have on their assets, your clients may feel compelled to protect their future with LTC Insurance.
Contact your LTC Associate today for more information and resources.