Lifetime HealthCare
Planning Center

Increased awareness of long-term care (LTC) insurance means increased interest in LTC coverage. However, not all clients qualify for a traditional LTC rider.

Financial exploitation of older adults is rampant, and the problem will only get worse as America’s population continues to age.

In fact, the rate at which adults over the age of 60 can expect to experience financial exploitation—1 in 20—is higher than the incidence of many age-related diseases, according to research published in The Journals of Gerontology. And that’s likely an underestimate because many older adults are unwilling to report exploitation.

Rising interest rates and inflation can dramatically impact long-term care insurance pricing.

This month, LTCI Partners Managing Director Tom Riekse spoke with Robert Eaton, Principal and Consulting Actuary of Milliman. In addition to interest rates and inflation, Riekse and Eaton discussed recent innovations in LTC product design and how to build trust in the digital age.

Senator Tim Scott (R-SC) knows the importance of the insurance and financial services industry and the role of agents and advisors in the wellbeing of Main Street Americans. He gained much of this understanding in his pre-political career as an insurance professional and NAIFA member.

There is and likely will always be a debate between what’s better: “optimistic” or “realistic” thinking. When it comes to retirement and aging, it’s beneficial to have both mindsets. To look forward to the enjoyment of the golden years while recognizing the need to plan ahead for rainy days.

For your clients who are homeowners aged 62+, a Home Equity Conversion Mortgage (HECM, commonly called a reverse mortgage) loan offers some distinct advantages over other types of home-equity-release loans.

According to a survey conducted by Clever,* about half (51 percent) of retirees believe they will outlive their savings. Perhaps even more worrisome, the study also found that 65 percent of retirees say they are not financially secure. They may be facing any number of financial challenges, including how to best pay for long-term care or combat recent jumps in the prices of food, gas, and just about everything else.

As a financial professional, you want to give your clients the best chance at financial success. For most homeowners aged 62 and older, home equity represents the largest portion of their overall net wealth, usually dwarfing their other assets (e.g., retirement savings). While home equity is good, unless the home is sold or the equity is tapped, it is of essentially no functional value to a homeowner in retirement because it is generally very illiquid.

Loyal NAIFA-CA member Louis H. Brownstone, CLTC, proposes a new solution for long-term care insurance planning in a recent Broker World article. Brownstone is the owner of California Long Term Care Insurance. A NAIFA member since 2007, he is the Government Relations/APIC IFAPAC Chair for NAIFA-San Francisco Peninsula and a NAIFA Financial Security Advocate.

Congratulations, Louis. We're #NAIFAproud of your commitment and dedication to our industry.

The Intercompany Long-Term Care Insurance Conference (ILTCI 2022) is taking place March 21-23 in Raleigh, NC, with sessions featuring NAIFA thought leaders and a special NAIFA networking event. The ILTCI’s annual educational conference is for representatives of the long-term and extended care insurance community and other strategic allies, including providers, public policy institutions, professional organizations, federal, state, and local government agencies, and the public. Online registration for the event is open.

Along with resolutions and high hopes, the new year also brings many insurance carriers promoting changes to their whole life insurance product portfolios. These revisions are due to adaptations in the IRC Section 7702 regulations. Prolonged low interest rates also continue to factor into product refreshes, revamps and adjustments. It may be overwhelming to sift through the fine print of the new products, but as you begin to evaluate them, keep these top five considerations in mind:

Home Wealth Can Help Your Older-Adult Clients to Fight Inflation.  

These days, inflation is on the minds of most people — and it is of particular concern for seniors. With prices rising at the fastest pace in decades, many people who are in or nearing retirement have heightened fears they may outlive their savings.

The stage is set for home wealth, which has also been on the rise, to play an important role in helping retiree homeowners to support a more efficient retirement income strategy. As a financial professional, you want to give your clients the best chance at financial success, which is why it is imperative that the strategic use of home equity is part of any retirement-planning conversation.