Talking with your clients about the need to plan for long-term care is a critical conversation about their future, yet it’s not always easy getting people to open up about this potentially sensitive subject.
Did you know that the percentage of people who own long-term care insurance (LTCI) is relatively low, compared to the percentage of people who will need long-term care at some point in their lives.
According to the American Association for Long-Term Care Insurance (AALTCI), as of 2020, only about 7.5 million Americans have some form of LTCI. This represents about 10% of the population aged 65 and older.
On the other hand, it is estimated that about 70% of people aged 65 and older will need some form of long-term care at some point in their lives. This means that the vast majority of people who will need long-term care do not have LTCI.
There are a number of reasons why so few people have LTCI. One reason is that the cost of LTCI can be high, especially for older people. Another reason is that many people are unaware of the need for LTCI or do not understand how it works.
The low rate of LTCI ownership is a concern, as it means that many people will be unprepared financially for the cost of long-term care. This can have a significant impact on families, as they may have to shoulder the financial burden of long-term care for their loved ones.
If you decide that you do want to start talking to your clients about LTC, here are a few ideas to get you started. These come from a marking piece designed my Mutual of Omaha, the leader in traditional LTC plans.
- Start by asking open-ended questions to get people talking about their families, finances, and plans for the future.
- Anticipate common objections, such as “What happens if I never need long-term care?” and “I can’t afford long-term care insurance.”
- Explain that most people will need long-term care services at some point, and that the cost of these services can be very high.
- Discuss the different options for paying for long-term care, including long-term care insurance, Medicaid, and out-of-pocket payments.
- Help people understand the importance of planning for long-term care so that they can make informed decisions about their future.
Here are some specific examples of open-ended questions that you could ask:
- Who do you know who has needed long-term care services?
- What are your plans for retirement?
- How do you think your family will be affected if you need long-term care?
- Have you thought about where you will live if you need long-term care?
- How will you pay for long-term care?
By asking these types of questions, you can get people thinking about their long-term care needs and start a conversation about how to plan for the future.
Read more by downloading the Mutual of Omaha Marketing piece by clicking here.
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Peter Zinnen | President
The Thompson Agency, Inc.
235 Mountain Road, #609
Suffield, CT 06078
(direct) 860-693-8031 | (cell) 860-214-1639
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