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Starting the LTC Conversation


Long-term care is a concern for both clients and advisors. 

Over the last six months I have been involved with several firms trying to improve how they discuss long-term care concerns with their clients.  Like most areas of insurance there is always a conversation or a focus on the need for it, but it is also important to discuss a client’s long-term wishes and the value of insurance.

You have to start the conversation somewhere

A recent case in point is a business owner I am currently working with who makes a substantial income, has a multi-million dollar estate with expectations of inheriting millions, including a majority share of the family business.  The advisor working with him was auditing his existing insurance coverage and brought up the idea of a hybrid long-term care policy.  This client could likely self-insure but only if, and when, the inheritance happens.  In the interim, it made sense to increase his life insurance to protect his wife.  Since the client’s parents still own the majority share of the business there is no guarantee his wife would inherit wealth if he died first.

The initial plan was to consider term insurance for income/wealth replacement and move some cash into a hybrid long-term care insurance (LTCi) policy.  The wife attended our second meeting armed with a lot of good questions and concerns as she understood the importance of getting the Right Fit insurance protection for them.  They were not interested in looking at traditional LTCi and they weren’t sure a hybrid plan was a good fit.  The wife quickly saw the hybrid policy takes care of the two weaknesses of traditional LTCi, but she wanted to look at the third option to insure for care.  Since she didn’t have any life insurance and the husband needed more, we looked at a permanent life insurance plan with a LTC rider.  They both understood the full amount of the death benefit would be paid back whether it be for care, death or a combination of both.  They were able to afford any option they desired and preferred to purchase a known benefit v. the potential large bucket of care that a hybrid has.

What started with the thought of 15-year term on the husband and a hybrid long-term care policy for each client switched to life with a LTC rider for each in equal amounts and additional term insurance on the husband.

The value of knowing the different options available and how they work makes you better able to advise your clients.  It starts with knowing the right questions to ask and having the right insurance partner on your team.



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