Bridging the LTC Coverage Gap Through Meaningful Conversations

As more consumers are recognizing the urgent need for long-term care (LTC) protection, we sat down with Jeff Levin, vice president of Care Solutions distribution at OneAmerica^®, to delve deeper into the behaviors and mindsets surrounding LTC coverage. Drawing from insights gleaned from the company’s two comprehensive studies, Levin sheds light on the collective desire for meaningful LTC conversations, exposes the present gaps in the industry, and identifies the forward-moving strategies at OneAmerica. 

OneAmerica and Hanover Research recently conducted two studies, one with financial professionals and one with consumers, in order to understand the behaviors and thinking regarding LTC planning. Why is this research important and what was the most surprising finding?

Levin: Understanding the mindsets and shifting patterns of behavior of both consumers and distribution partners is essential, especially in an ever-evolving long-term care landscape influenced by medical advancements, potential cures for diseases like Alzheimer’s, and unforeseen challenges like the pandemic. 

But the standout revelation from our studies was a unanimous sentiment from both consumers and financial professionals: the desire to have a meaningful conversation about long-term care. A lot of financial professionals think consumers avoid the topic, but they are, in fact, actively discussing it — albeit with peers and family. The gap lies in having these discussions with financial professionals. Many financial professionals hesitate to initiate the conversation, perhaps fearing a lack of expertise. Yet, both parties are eager to engage in these discussions. This underscores a critical missed opportunity in long-term care planning. 

Starting a meaningful and educational conversation is key. Our mission is to equip both financial professionals and consumers with the tools, such as our step-by-step guide to long-term care, necessary for informed decision-making. 

According to the study findings, 21% of financial professionals have never offered LTC coverage to their clients. What resources is OneAmerica providing to change this?

Levin: We recognized that traditional methods, like inundating clients with numbers on an illustration, often fall short in conveying the real value and understanding of LTC protection. That’s why we co-created a new storytelling tool with Ensight, a leading life, long-term care and annuity digital sales acceleration platform. 

This Care Solutions sales story transforms the numbers into a coherent and compelling narrative tailored specifically for the client. It outlines the features and benefits recommended by the professional in a relatable manner. It’s like a script, allowing the professional to paint a clearer picture of the coverage’s impact. Our aim is to make financial professionals feel more confident introducing LTC protection to their clients using this narrative approach. 

Asset-based LTC protection is a core offering at OneAmerica. What makes this type of long-term care protection attractive to consumers?

Levin: Asset-based long-term care protection stands out for its value and flexibility. Unlike traditional LTC insurance, which operates like a term policy with no residual value upon cancellation, asset based LTC protection guarantees an underlying value. It benefits policyholders in all situations — whether it’s the need for care, or a desire to opt out, or if they pass away without using the coverage — because their heirs receive a death benefit. People may perceive it as being pricier initially, but it eliminates the “use it or lose it” dilemma, so consumers are always receiving value, no matter what happens.

Your research highlights cost as a significant barrier. What steps is OneAmerica taking to address this?

Levin:
Cost is always a pivotal factor. OneAmerica asset-based products guarantee no premium increases, unlike standalone products that might see premiums rise over time. 

Obtaining coverage doesn’t always mean purchasing it all up front and in one product. Clients who find it difficult to get full coverage immediately can start with a minimum, and as life’s circumstances change, they can decide to “stack coverage.” By the time retirement rolls around, the client can adjust the amount of coverage that is needed. Ultimately, it’s better to have some level of protection in place than to have no strategy in place when a long-term care need arises.

How can conversations reshape perceptions and decisions surrounding LTC?

Levin: Storytelling and clarity are essential. Clients often want to know the direct impact on their lives, not just features and benefits. By simplifying the narrative, we connect more deeply. 

To use an analogy: Many Mount Everest climbers who are injured or lose their lives do so on the descent, not the ascent. 

Similarly, while we focus on accumulating assets for a dream retirement at life’s peak, the plan for how to protect and use those assets during retirement — the descent — is often overlooked. We spend all this time getting to the top to enjoy what we think will be a long and healthy retirement, but we don’t plan for what could happen coming down the other side of the mountain.

The one prevailing issue is LTC often stays out of sight and out of mind until it becomes an urgent need. Although many consumers are comfortable discussing LTC with doctors and attorneys, the conversation should also include a financial professional who can act as a guide, not only leading clients safely to the top of the retirement mountain but also helping them down the other side by navigating and deciphering LTC solutions.

Hanover Research and Ensight are not affiliates of the companies of OneAmerica.

To get a firsthand look at the Care Solutions sales story and how it can be used to start meaningful LTC conversations with your clients, GO HERE for a sample output.