Life Insurance Selling - November 2010

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Trends in LTCI

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Worksite Long-Term Care Insurance Toolbox (LTCi Publishing, May 2010) to make this transition easy for producers. But all types of LTCI producers have something exciting to sell. Combo products have fantastic potential for the older buyer, especially with less stringent underwriting and the ability to take gain out of non-qualified annuities tax-free when it’s spent for qualified long-term care. 22

Education brings it all together for lead
generation:
• Send series of educational articles to
clients and prospects with call to ac-
tion to request a simple booklet about
planning for long-term care; and
•Engage media to educate residents
about how the Partnership can take the
burden off state budgets while giving
consumers private-pay choices. States
don’t have the money to educate resi-
dents about it, so we as the private sec-
tor have to do it.

Phyllis Shelton is President of LTC Consultants, a Nashville-based firm that produces long-term care insurance sales training and sales aids and of LTCiTraining.com, an online training company that provides the mandatory training required to sell long-term care insurance in most states. She can be contacted at ltcshelton@gmail.com.

Footnotes:

1. Congressional Budget Office, “H.R. 4872, Reconciliation Act of 2010 (Final Health Care Legislation),” 3/20/10; 2. “FY 2008 State Expenditures Report,” National Association of State Budget Officers, Fall 2009; 3. “Medicaid Long-Term Care: The Ticking Time Bomb,” Deloitte Center for Health Solutions, June 21, 2010; 4. Ibid; 5. “Economic Downturn Impacting Women’s Ability to Plan for Long-Term Care Costs, New Survey Finds,” AHIP,

1/9/09; 6. CMS HHS Letter to State Medicaid Directors, August 6, 2010 re: Improving Access to Home and Community-Based Services, SMDL #10-015, ACA #6; http://www.hhs.gov/ od/topics/community/iathcbssmd8-6-102. pdf; 7. McNichol, Oliff, Johnson. “Recession Continues to Batter State Budgets; State Responses Could Slow Recovery,” Center on Budget and Policy Priorities, Updated July 15, 2010; 8. AHCA Capitol Connection 8/10/06; 9. Schmitt, Rick. “Health Reform Facing Early Legal Tests,” Kaiser Health News, 10/6/10; 10. Florida Case Case No. 3:10-cv- 91 http:// www. healthcarelawsuit.us/webfiles.nsf/WF/MRAY- 83TKWB/$file/HealthCareReformLawsuit.pdf; 11. Johnson, Nicholas, Phil Oliff and Erica Williams. “An Update on State Budget Cuts”, Center on Budget and Policy Priorities, Updated August 4, 2010; 12. “2010 Fiscal Survey of the States,” National Association of State Budget Officers; 13. Long-term care insurance carriers cost of care surveys, 2009-2010; 14. Based on an average 6% compound growth rate between $56 daily cost in 1987 compared to $198 in 2009. Source for 1987 costs: Medical Expenditure Panel Survey (MEPS) Chartbook #6 “Nursing Home Expenses 1987- 1996,” Agency for Research and Quality, p. 6. Source for 2009 cost of care: MetLife Cost of Care Survey, October 2009; 15. NAIC LTCI Experience Reports and industry stats through 6/30/10 and Census Bureau; 16. LIMRA, 3/10; 17. “Multi-Life in the Large Group Market,” Session 09-19, 9th Annual ILTCI Conference, Reno, NV, 3/30/09; 18. 2010 Sourcebook for LTCI Information, AALTCI; 19. Shelton, Phyllis. 2010 LTCI Worksite and Combo Products Fall Tour Workbook; 20. “America Talks: Protecting Our Families’ Financial Futures,” a national survey conducted by Age Wave/Harris Interactive, sponsored by Genworth Financial, March 2010; 21. Reports from CT, NY, IN, CA LTC Partnership Directors as of 9/30/10; 22. Pension Protection Act of 2006 Public Law 109- 280, Sec. 844 (a) ( 11) (B)