Consumers find stable premiums, tax-free and unchanging benefits to be highly appealing features in asset-based long-term care protection… They might be right.

Consumers’ impressions of traditional long-term care (LTC) protection are largely neutral or negative. In contrast, once explained, perceptions of asset-based LTC protection are more positive. Among the two types of insurance, asset-based long-term care is preferred by 66% of consumers, and 69% of them find it appealing to some degree.

Even more interesting, however, was the incredible response from consumers when they shared their thoughts about the most appealing features of asset-based LTC protection. Presented with a list of features, they were especially drawn to the idea that premiums don’t increase (94%), tax-free benefits (92%), unchanging benefits (90%) and ability to pass unused amount to heirs (84%).

Apparently, the perception of long-term care insurance, or really any insurance product, as purely sales-driven and untrustworthy continues to permeate the marketplace. What if, instead of fighting the stigma, however, financial representatives leaned into it? After all, there is admittedly a history of challenges that have plagued this product in the industry. While conceptually a great product, traditional LTC insurance has difficulty forecasting the future. Being transparent and honest about the challenges the product has received can help define expectations and explain the limitations of the product. It could still be a great choice for some customers.

It could also open the opportunity to discuss other products, such as asset-based long-term care protection and its positive features.

When an individual purchases an asset-based LTC policy, they are essentially buying a policy based on life insurance and annuities. When an individual decides to apply for long-term care services, the insurer will segregate the assets in the policy and hold them until a claim is paid out. Instead of the death benefit being paid out to the beneficiary, the insured can tap into benefits from the policy to pay for long-term care if the need arises. If customers stay healthy, the entirety of the death benefit could be paid out to your beneficiaries after your death.

“OneAmerica was one of the first in the asset-based LTC product space,” says Jeff Levin, vice president and head of Care Solutions at OneAmerica. “For decades we’ve paid out thousands of claims and have seen our products provide stable premiums, tax-free and unchanging benefits that are highly desirable. There is an appetite for these benefits that asset-based LTC protection can provide. By focusing on the benefits instead of ‘selling insurance,’ we can hopefully take away some of the stigma associated solely with insurance sales.”

For additional resources and the full consumer research survey about long-term care, please visit https://bit.ly/LTCINN.

OneAmerica® is the marketing name for the companies of OneAmerica.