A recent Investment News article looks at why long-term care (LTC) insurance can be a difficult sell. Among other things the article considers how health reform and specifically the CLASS Act may counter that trend and build awareness around long-term care:
Insurers are looking for ways to cash in on the Community Living Assistance Services and Supports Act, a part of the health care reform that creates a taxpayer-subsidized federal long-term-care program. The bare-bones benefit is to pay $50 per day. Companies may come out with a supplemental product to add to the federal benefit, but that product probably won’t be available for a couple of years, Mr. Schmitz noted.
The key to the ultimate success of the market depends on awareness on the part of clients and their advisers, Mr. Schmitz added.
“They have to be aware of LTC and have to want to plan for that risk,” he said. “It’s really a matter of education, getting more people to sell it and having the right public policy with respect to long-term care. There aren’t any simple answers.”