Pandemic Has Consumers Looking For LTCi Policies, Exec Says

Since the start of COVID-19, the topic of long-term care has been in the news and has gained the interest of many consumers, as the pandemic made them realize that the need for LTC can arise suddenly—and without warning.

IndustryNewsNet recently spoke with Craig Roers to learn more about the effects of the pandemic on long-term-care insurance (LTCi), and how agents can boost their LTCi sales. Roers is head of marketing at Newman Long Term Care, a Thrivent Company.

Effects Of The Pandemic

LTC has frequently been in the news since the start of the pandemic, but not always in a positive way, pointed out Roers. People heard about COVID-19 outbreaks in nursing homes, staff shortages and facilities barring or limiting visitors. For many, this has raised some concerns. Most people were wary about receiving care in a facility before the pandemic, but they may be even more set against it now, he added.

Despite these challenges, there have been some encouraging developments as well, Roers added. In particular, given the current heightened awareness of long-term care, financial advisors are having more prospects reach out to them to begin proactive conversations around what a long-term care event might mean for them and their families.

Through these conversations, financial advisors are able to help them understand that advance planning equates to more options, and that a properly funded long-term care plan offers them the flexibility to stay in their home if they prefer.

Another key change has been the accelerated adoption of remote sales, with e-apps far outnumbering paper applications over the course of the pandemic, Roers said.

“This is something we experienced firsthand at Newman Long Term Care, as the brokerage bringing Thrivent’s LTCi solutions to independent distribution," he added. "The Thrivent e-app launched in February 2020 and by 2021, 83% of all apps from third-party sales were electronic. When we launched other carrier e-apps in the past, they had much slower adoption rates."

COVID underwriting guidelines also continue to evolve, he said. “As we learn more about the short- and long-term effects of COVID-19, carriers are working to refine their guidelines,” he added.

Financial advisors have to keep up with these changes so that they can clearly explain the underwriting process to their clients and set expectations about any required exams.

Boosting LTCI Sales

Roers then offered a couple of steps advisors can take to increase their LTCi sales. First, he said, they should position extended-care planning as a method of creating options for care.

For example, if someone is set against receiving care in a facility, financial advisors can help their clients think about possible alternatives. They should help their clients understand that planning now – while they are young and healthy – gives them far more flexibility with respect to the type of care they can receive in the future, and where they can receive it.

Next, Roers would encourage advisors to offer educational webinars, which can be more cost-effective than traditional seminars while providing a much broader reach.

“When doing this,” he said, “don’t just invite new prospects but revisit past extended- care clients as well, so that they can share the invite with their network.”

Likewise, advisors should allow their webinar registrants to attend anonymously so that attendees will feel less concerned that they’ll receive a slew of unwanted communications. “If you deliver quality content, attendees will hopefully be interested in hearing about next steps,” he added.

Finally, advisors should consider teaming up with a long-term care specialist. With ever-evolving parameters around underwriting, products, and pricing, he said, it’s hard for advisors to stay current with everything.

By partnering with someone focused on LTC planning, advisors can serve more clients, and have better placement rates, while freeing up resources for other areas of their business.

“A good LTC partner can simply be positioned as the extended care resource for the practice. Partnerships like this can make even a one-person agency look and feel like a much bigger team,” Roers said.

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].

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].