In today's financial planning environment, the role of a financial professional goes beyond managing investments and retirement accounts. One essential topic often overlooked is the discussion of long-term care (LTC) and life insurance. Avoiding these discussions can lead to missed opportunities and even lost clients, and competitors who address these needs gain an edge. Here's why initiating these conversations isn't just important; it's essential. And the time to start is now.
Comprehensive Financial Planning Isn’t Complete Without LTC
Financial planning isn’t just about building wealth — it’s also about protecting it. LTC and life insurance are essential risk management components of a comprehensive plan. According to John Hancock’s Longevity Preparedness Index, less than half of those surveyed (43%) have taken steps to create an extended care plan, such as access to a long-term care caregiver if needed. The survey examined various aspects of longevity planning, revealing that individuals felt least prepared when it came to planning for long-term care.
By discussing these critical matters proactively, financial professionals help clients prepare for potential future care expenses and secure their financial well-being. With today’s evolving product options — including combo life/LTC solutions, annuity hybrids, and joint policies — planning is now more flexible, versatile, and accessible to a wider range of people.
Build Client Trust by Filling the Gap They Don't See
Clients naturally look to their financial professionals for holistic guidance that encompasses all aspects of their lives, bringing awareness to areas of their planning that could create financial risk or necessitate lifestyle changes. A Northwestern Mutual study found that 61% of Americans believe they’ll need LTC at some point, and 74% would prefer to receive care at home. Still, only 35% of Gen X and 42% of Boomers have planned for it. A significant portion of the population remains unaware of the substantial financial impact of an LTC event and how to prepare for it, despite being aware of the potential need for care and the type they would prefer.
Initiating this conversation helps clients visualize what care could look like — and how to fund it with minimal disruption. It also positions the financial professional as proactive and future-focused, strengthening trust and long-term loyalty.
Prepare Clients Before Underwriting Becomes a Barrier
Many people wait too long to explore LTC coverage, only to find they can no longer qualify or afford the cost. In a recent Crump Insights Podcast, Rick Stewart, Sales VP of Crump’s Long-Term Care Solution Center, shared that long-term care insurance involves medical underwriting, and younger, healthier clients have more and better choices. Most buyers are between 50 and 65 years old; however, options are also available for younger clients.
By raising the LTC topic early, you can help clients lock in coverage while it’s still an option. For those outside the typical window, newer annuity-based LTC combo products offer compelling alternatives.
Match Today's Clients to Today's Products
Instead of one LTC insurance path, clients can now consider:
- Life insurance with LTC riders is helpful for younger individuals who need death benefit protection but want to start LTC planning.
- Annuities with LTC riders are a great alternative for older clients or those with health conditions.
- Joint policies are ideal for couples on a budget who still want coverage for each spouse.
- Short-term care policies are emerging in the mid-market as lower-cost policies for those on a budget.
These products offer more choice and control. LIMRA reports that product innovation is now a major driver of growth in the industry, especially among younger buyers and caregivers.¹
Blended and non-traditional families are reshaping the way people approach caregiving for older family members."
Today's changing family dynamics — like remarriages, multigenerational households, and unmarried partners — require more tailored long-term care planning conversations and insurance solutions. Financial professionals who recognize this shift are better positioned to guide planning that truly aligns with their clients' needs.
Address Real Costs with Real Numbers
A standard traditional LTC policy today averages approximately $3,000/year per person for individuals aged 50–60. Hybrid policies (e.g., life with LTC) can cost $10,000/year for 10 years or require a $100,000 lump sum. Meanwhile, short-term care policies can be obtained for as little as $500 – $1,000/year.
This range allows financial professionals to meet clients where they are — whether they’re affluent, budget-conscious, younger, or older. The key is having the conversation early enough to maximize options.
Compliance, Confidence, and Competitive Advantage
In some states, financial professionals are required to discuss LTC insurance. But that shouldn’t be the only reason to bring it up. LIMRA research shows growing interest in combo products — especially among younger adults and clients juggling both aging parents and children.¹
The financial professionals who embrace these options aren’t just meeting requirements; they're also taking a proactive approach. They’re showing clients how to prepare for real risks that could derail a financial plan.
What's the bottom line? Don’t wait for clients to ask for LTC?
Financial Professionals who offer a comprehensive suite of services, including discussions about LTC and life insurance, can differentiate themselves from those who do not. It shouldn’t be something to skip or even treat as an add-on. Financial professionals who lead with LTC can bring more value to the table. It’s a smart move that protects both your clients and your practice. These conversations build trust, uncover gaps, and give you a competitive edge.
Contributor
Rick Stewart, CLTC, is the Director of the Crump Long-Term Care Solution Center. He began his career with Crump in 2006 and has over 15 years of LTC and linked benefit product sales experience as an LTCi wholesaler. During his tenure, Rick also served as a regional director for Crump’s Solution Centers, overseeing the sale of LTCi, disability insurance, and annuities. Today, Rick leads a team of LTCi wholesalers. Together, they are a valued resource to financial professionals and clients learning how to include extended care planning and LTCi into their overall financial plans.