How to identify ideal prospects for long-term-care insurance

Identifying ideal candidates for long-term-care insurance (LTCI) is an uphill task that many producers face as they look for prospects most likely to be interested in LTCI. The following insights by Tom Riekse and Craig Roers, will help move them closer to accomplishing this important objective.

Riekse, who is managing director of LTCI Partners, LLC, said that the following consumers are particularly good prospects for coverage:

• People who are experienced with caregiving. By far, Riekse said, the most likely people to show interest in LTCI are those who have experienced a loved one who needs care. They will be very aware of the financial cost of care, as well as the family dynamics that are involved. They will be interested in LTCI whether the person needing care had LTCI or not.
• Single people with no children. People who are married and have children may assume that their family will help with care, Riekse added. Those who are single, however, need to plan for long-term care. LTCI can help with more than just paying for care, he pointed out. “Many policies provide care-coordination services that can assist policyholders and those who are assisting with ensuring the best possible care,” he said.
• People who are 45-60 years of age. People often confuse LTCI as a “senior” product that is purchased after they retire. “However,” Riekse said, “the sweet spot of premiums is for those in their high earnings years of their 50s.”
• Closely held business owners. Riekse said that the tax advantages of LTCI are threefold:

• • Premiums are deductible like health insurance.
  • Premiums paid are not considered income to employees.
  • Benefits are typically tax-free. “LTC Insurance is a great fit for business owners looking to deduct expenses now that will benefit them in the future,” he said.

• Couples who have completed paying for higher education expenses. In a similar vein, Riekse added, people who have finished paying for the college education expenses of their children now need to turn their attention to retirement planning. “They’ve been used to paying those expenses for college. Why not fund an LTC plan that will also help their children down the road by reducing the care burden on them?” he asked.
  

  More groups open to buying LTCI

Roers, marketing manager at Thrivent, also mentioned people in their early 50s as among those who are more open to buying LTCI coverage. “They are starting to think more seriously about retirement and how extended care might impact their planning,” he said. “At Thrivent,” he pointed out, “we try to connect with clients in their 50s as research has shown us this is a critical window for planning. If they wait until their 70s, there’s a greater likelihood that almost half will be declined or postponed due to health.”

Other groups mentioned by Roers as ideal candidates for LTCI include:

• Businessowners. They can take above-the-line deductions for their LTCI premiums, Roers said, and can look at LTCi in the context of succession planning. Some may consider offering it to certain employees to help recruit, retain and reward top performers.
• Women. They have a longer life expectancy, are more likely to be caregivers for others, and are more likely to use a long-term care insurance policy. Almost two-thirds of all claims are for women, and women stay on claim 50% longer than men.
• Same-sex couples. These couples may or may not have children or other family members to care for them, and they don’t want to burden their partner. “They also appreciate that insurers provide discounts not just to married couples, but also to those in committed relationships,” Roers said.
• High-net-worth clients. They understand risk and are looking for tax-advantaged ways to address costs. While some may be able to fund their care, they understand the value of insurance.
• Middle-class clients are looking at how to leverage their hard-earned money and may be more amenable to co-funding long-term care risk, Roers added. For example, he said, they may opt for coverage that insures only 70% of the risk and pay the remaining care costs out of pocket. The Certification for Long-Term Care (CLTC) surveyed consumers in 2024 and found the most popular approach was co-funding.

“The bottom line for financial advisors?” Roers asked. “It's all about being proactive, “he said.

Roers added that where they have really found success over the years is in connecting with clients between the ages of 50 and 60 with a fast-approaching birthday. Prospects appreciate learning that premiums are based largely on age and health.

“If you reach out to them two weeks before an age change with an offer to show them premiums for their current and future age, many will take you up on that discussion,” Roers added. “The two weeks create a short, yet manageable timeline and may save the younger age for up to 30 days after their birthday.”

© Entire contents copyright 2025 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

Ayo Mseka has more than 30 years of experience reporting on the financial services industry. She formerly served as editor-in-chief of NAIFA’s Advisor Today magazine. Contact her at [email protected].