The COVID-19 Pandemic Has Upended The LTCi Market

NAIFA’s 2020 Impact Week: Long-Term Care Conference was a treasure trove of information for financial professionals looking to enhance their knowledge of the limited and extended care planning and long-term care insurance markets.

The online event was presented by NAIFA’s LECP Center, which gives agents and advisors the opportunity to network with service providers and gain information they can use to address the changing needs of the market. The event attracted hundreds of financial professionals and featured numerous experts representing the top organizations in the industry.

Virtual Worksite Enrollment

From one of these experts, Denise Gott, participants learned how to significantly improve the process of virtual worksite enrollment. Gott is the CEO of ACSIA Partners, a distributor of LTCi and related insurance products and services.

COVID-19 has highlighted health concerns and has proven to be a special challenge for people needing LTC services, Gott said. The pandemic has also underscored the need to plan for the future and the need for LTC products and services as many older Americans choose to stay in their homes as long as possible. This choice is putting a burden on many caregivers, who have to take time off from work to care for them. 

Trends Driving The LTC Planning Market

From another expert, Matt Hamann, attendees learned about more trends that are driving the LTC planning market. Hamann is sales director and vice president of institutional, worksite multilife and brokerage at Transamerica. Here is a rundown of some of those trends.

» There is growth in voluntary benefits in the workplace, including LTC solutions. The number of employers offering LTCi benefits has grown by 10% since 2017.

» Millennials and Generation Z occupy a larger portion of the marketplace. 

» Millennials and other clients are driving the growth of digital engagement. They want online options for learning about LTC options and making planning decisions.

Conference attendees gained additional insights about the LECP/LTC/LTCi industry from a panel consisting of Ryan Bivins, national sales manager, long-term care, Pacific Life; Tracey Edgar, vice president of sales, care solutions, OneAmerica; Brandon Heskett, national sales vice president, SecureCare, Securian Financial; and Tony Massenelli, director of long-term care sales, Nationwide. The panel discussion was moderated by Steve Cain, sales and business development leader, LTCI Partners.

These executives shared some of the trends that are shaping the LTCi industry.

» Heightened customer awareness of the need for planning and for LTCi protection.

» Increase in hybrid life and LTCi products.

» Record low interest rates, prompting carriers to reprice new plans.

» Growing interest in group LTCi. 

» Rate stability on new traditional LTCi coverage.

To grow their business, financial professionals can increase client education, talk more about LTC and LTCi to their prospects and clients, and make sure they are having the right conversations with them. 

The panelists predicted that in 2021, there will be more growth in the number of LTCi products, partly because of the growing number of flexible products being launched and also because of the uncertainty created by COVID-19. 

NAIFA has created the Life and Annuity Certified Professional certification for advisors. Companies that have approved this certification include State Farm, New York Life, Guardian, Country Financial, SagePoint, Woodbury Financial, Royal Alliance, FSC Securities and Cambridge Investment Research. 

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].