Is the Long-Term Care Insurance Landscape Changing?

Sunday, April 5, 2015 | Leave a comment

Estimated reading time: 8 minute(s)

Everywhere you turn for information, you are led to believe that the long-term care insurance (LTCI) industry is changing dramatically. Many authors and information outlets advocate that the changes are sweeping and dramatic, and we should fear the change. However, I believe change is nothing to fear.

The truth is, although there have been changes in the industry, the basic understanding and purpose of LTCI has remained unchanged. It is an asset protection tool designed to help people enjoy freedom of choice, transfer risk (like health, disability and auto insurance), and pass assets to family or charity rather than giving them to a corporation who owns a long-term care facility or agency.

As a consumer, you need to focus on the things that have been important in the past. LTCI policies still continue to cover home health care, adult day care, assisted living care, nursing care, hospice care, and respite care. There are still only five options you need to focus on when considering coverage. Your premiums are waived when you are approved for a claim, and your premiums are based upon your age and health when you apply.

All in all, the LTCI industry is no different than any other insurance industry. It is constantly evolving and getting better. The health, life, and auto insurance markets continue to evolve as well. However, sometimes change requires time for people to get comfortable with the new normal.

That being said, many occasional sales agents believe rather then getting comfortable and understanding the value of these changes, it’s easier to close their eyes and ears and warn their clients away from the real value of LTCI.

This is a subject that requires careful consideration and planning. Receiving advice from an inexperienced professional could cost you and your family hundreds of thousands of dollars during a time your family could need it most. Very few professionals truly understand the subject, the potential negative impact on a retirement plan, and the effects a family will endure paying for long term health care on their own. In my opinion, even fewer professionals understand how to effectively design a policy congruent with their clients’ goals and budget. Furthermore, many do not understand the value of shopping coverage throughout the marketplace, which is essentially to finding the best company offering the best rate an applicants situation.

Sadly, many of these so-called professional salespeople recycle myths I’ve fall for these myths every day and it affects their ability to make the best decisions about how to protect their assets for the benefit of a healthy spouse, kids, grandkids, and/or charity.

Have you ever heard long-term care insurance is too difficult to understand, has too many options to choose, is too difficult to get a claim paid, doesn’t pay their claims, is in turmoil, or that you can pay for care on your own? Then you owe it to yourself to discover the real truth.

If you’d like a very simple way to learn the truth of the 12 most common myths of long-term care insurance, free of any sales pressure or hype, visit:

In LTCI planning Retirement Planning

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