November is Long-Term Care Awareness Month

Published: 11.12.2024

As people live longer, the likelihood they will need some assistance with activities and daily living is higher. In fact, it has been reported that 70% of people who survive to age 65 will be in need of some type of long-term care services as they age.

Long-term care (LTC) insurance can help fund support and services for long-term care—making it an extremely important option for insurance brokers and their clients to consider.

What is Long-Term Care Insurance?
Types of Long-Term Care Insurance (LTCI)
Long-Term Care Insurance Costs
Why Should Insurance Brokers Be Offering Long-Term Care Insurance Solutions?
Why Should Individuals and Consumers Consider Purchasing Long-Term Care Insurance?

What is Long-Term Care Insurance?

Long-term care insurance (LTCI) refers to a variety of services that aren’t typically offered through regular private health insurance policies or Medicare.

Long-term care insurance typically covers services that assist people with chronic medical conditions or disabilities in managing daily activities and tasks such as dressing, eating and bathing. It also includes care provided in a variety of places, such as:

At-home care
Nursing homes
Assisting living facilities
Adult day care centers

Types of Long-Term Care Insurance (LTCI):

Traditional long-term care insurance: A straightforward, standalone policy covering expenses only related to long-term care services and support. Like other types of traditional insurance, policy holders choose how much coverage they would like, pay premiums based on their coverage and make claims if a covered expense arises.
Hybrid long-term care insurance: Another option is a life insurance policy paired with a long-term care rider. In this case, adding a long-term care rider could allow an individual to use a portion of their death benefit to pay for long-term care. The death benefit is reduced by the payout on LTC claims.
Linked benefit policy: This policy, which is also known as asset-based long-term care insurance, combines long-term care coverage with another type of insurance such as life or annuity. The asset-based LTCI is a fixed premium policy that provides LTC coverage along with a small death benefit. Premiums are guaranteed never to increase, and the insured will know the exact amount of monthly LTC benefit available.

Long-Term Care Insurance Costs:

The cost of coverage will vary based on:

Age and health: Costs increase with age. Additionally, some preexisting conditions may also increase rates or affect coverage.
Gender: On average, women pay more for LTC coverage because they tend to live longer than men and would therefore more likely need care as they age.
Marital status: Married couples may benefit from lower rates with a joint long-term care policy vs. two individual policies.
Amount of coverage: Costs vary based on a policy’s specifics, such as limits on the daily and lifetime benefits and elimination periods.
Insurance company: Different long-term care insurance carriers have different rates for the same amount of coverage. It is important to get quotes from multiple carriers for the same amount of coverage in order to make an informed decision.

Why Should Insurance Brokers Be Offering Long-Term Care Insurance Solutions?

Protect and show your commitment to your clients: Long-term care might not be something your clients have on their mind. As a benefits and insurance consultant, it is your responsibility to educate and bring new solutions to your book of business.
Help employer clients recruit, reward and retain key employees: Long-term care coverage can be leveraged by employers as an executive benefit. By offering these solutions to key employees, employers can stay more competitive and retain top talent.
Opportunity to earn more: Offering Long-term care solutions helps insurance brokers diversify their product portfolio. Plus, there is a large market of younger baby boomers who are just turning 60 who may be beginning to look into purchasing or expanding their LTC coverage.
Remain the expert for all things benefits: Assist your clients with all of their insurance needs so they don’t need to call anyone else. By having a broad range of solutions in your back pocket, your clients will remain loyal and will be more likely to send referrals your way.

Why Should Individuals and Consumers Consider Purchasing Long-Term Care Insurance?

More choices for care: The more money you have available to spend on care, the better quality you can receive. Planning now can ensure you receive the type of care you prefer, in the place and by the providers you prefer.
Protect your savings: Without proper coverage, the cost of long-term care services can quickly add up. The median cost of a private room in a nursing home is $330 per day or $10,025 per month in 2024. These expenses can quickly exhaust someone’s savings and retirement funds.
Reduce financial and personal burden on family: Without the funds for long-term care, many people need to turn to family for support. Family caregivers may need to cut back on their own personal expenses or have their loved one move in to better support them. Additionally, caregiving can put personal strain and added stress on family members, requiring them to balance their own lives with caregiving duties.

How Does the Savoy Life Insurance Team Help Brokers and Their Clients?

We work with top national Long-term care (LTC) insurance carriers and can assist with:

Providing Long-term care insurance quotes
Benefits implementation and ongoing support
Guidance for specific federal and state regulations and plans
Ongoing educational opportunities and specialty/ancillary-related CE topics

Contact Our Team Today.

Savoy has been providing brokers with general agency and consulting services for over 39 years.

Whether your clients are looking for Long-term care insurance solutions or other life insurance and disability insurance options, our experts are ready to assist.

👋🏼 Let’s chat. To learn more about Savoy’s life insurance general agency capabilities, contact our team today.