|LTCI Price Point Approach|
One of the most common objections to LTC planning is the perception that the premiums are too expensive. Conversely, no one ever says, “I am glad I didn’t plan” and “depleting my life savings for LTC care did not impact me or my family in any way.”
To help clients realistically deal with this coverage gap, advisors can shift the affordability paradigm by incorporating budget priorities and concerns into their client discussions. Once the clients understand the financial pain points, the advisor can take a “target premium” approach to help structure their client’s plan. This will create a plan that fits comfortably into their client’s budget. The target generally is a $75 monthly premium for ages 45-51, $100 monthly premium for ages 52-58 and $150 monthly premium for ages 59-65.
There are numerous carrier and plan options that can be offered in these ranges, so a change in your approach could significantly increase your ability to address clients' LTC needs. Like life insurance, the longer someone waits to purchase coverage, the more expensive coverage is. Your clients can no longer afford to sit on the sideline, waiting for the right time to cover this risk. The time is now. Some protection is going to be more helpful in their time of need, rather than none.