One of the biggest challenges in this industry is engaging in conversation with your prospects and clients about long term care. It is a very emotional topic for advisors and consumers alike. Many of us specializing in the retiree market have chosen to sidestep the issue. I believe those days are coming to a close. We have to talk about it. The question is... how does today’s advisor in the senior market begin this conversation and what should he/she talk about? Let’s explore.

There is no doubt in my mind that a traditional LTCI policy, with a 5 year benefit, with cost of living rider, and return of premium rider, is the best deal. Wow! That’s a mouthful. That may be enough for you to quit reading this article. Where do you turn? Which company? How’s the underwriting? What about declination? What about rising premiums? Good news: There is a way for you to put your toe in the water.

The ‘solution’ I am presenting is not the cure all. It is also not the most comprehensive answer. But like high deductible major medical insurance, something is better than nothing. What is this solution?

Allow me to introduce you to an annuity with a Long Term Care Rider. There are a few companies with this fixed annuity/LTC rider product. There are also many on the drawing board. In its simplest terms, it is a product that first uses your client’s account value to handle LTC needs. It then offers to match or double the benefit through the use of a rider. The premium for this rider is deducted from the account value.

Underwriting is less restrictive, premiums are usually lower and it is not a “use it or lose it” policy. The account value of the fixed annuity is available to your client, should they desire to surrender. It provides your client with coverage in the event of disaster and it is easy to talk about.

Some in our industry might see this situation as a problem to deal with. I view it as a tremendous opportunity. We have many retirees that can’t afford or refuse to pay long term care premiums. This solution gives them the necessary coverage, allows you to fill the gap in their financial plan, and will allow both you and the clients to sleep well at night. What’s the first step? A little education on your part, a modification to your marketing plan, and a little conversation.

Not sure where to start? I’ll give you a hint: Pick up the phone, give us a call and let’s talk. Because if you don’t, someone else will. 

​Are you asking where your clients and prospects “hurt financially?” Believe me, your clients do have some “ouchies.” But, they are very proud when it comes to their financial health. They won’t volunteer where it hurts unless you ask them. Ask them once, twice, or more.

Because of their pride, financial illness can make them feel as though they brought on this ailment themselves. They may feel stupid when admitting to their economic pain. So, we have to pry. It’s is not unlike what the doctor does when he brings in his chart. We bring in our fact finder. Or, at least we should.

There are many different kinds of financial pain. Some can be very evident. For example,

• Expenses too high – income too low;
• Excessive credit card debt;
• Significant losses in the equity market;
• High cost of prescription drugs and medical care;
• A new or unexpected, major expense – e.g., new roof, furnace, etc.

These “pains” are easy to diagnose, and the prescription for financial health somewhat easier. Control expenses, increase income, get a budget, and make a plan – lots of tough medicine here. But what about those harder to diagnose illnesses that keep them up at night?

One of the many annoying problems that comes with getting older is increased worry. It seems as though worry should lessen as we age, but it doesn't. Many of us continue to worry about our kids, even after they're out of school and married. Granted, the worries are usually different, but they give us some sleepless nights. I speak from personal experience here. If my wife and I are lucky enough to have grandchildren, I know we’re are going to worry about them too. We're going to hope that they're healthy, that they do well in school, go to college, graduate, get good jobs, find and marry wonderful partners, have kids, buy wonderful homes, and retire wealthy. Sounds kind of Disney-esque, doesn’t it – sort of a “Father Knows Best” image from the 1950s!

But today is not the 1950s! There’s been a dramatic change in life expectancy over the past fifty or sixty years. Today, it's common for both men and women to live well into their eighties and nineties. It's not very unusual to read or hear about many people living past age 100! You talk about worry!  

With these statistics in mind, many of us are asking some serious questions:

• “Can I really afford to live that long?”
• “If I could only be assured that I'll have enough money.”
• “How can I pass on a legacy to my kids and grandkids?”
• “I wish I didn’t have to worry about the stock market when I watch the evening news.”
• “If only I could relax knowing that I am safe financially so I can finally get a good night's sleep.”

These are the "pains" of aging that most of us aren't comfortable discussing with strangers.