There has been a lot of growth in the life with LTC insurance rider sales while stand alone LTC sales have been flat. Here are three things that have been successful with life/LTC sales that may help stand alone sales:
- Bigger Initial Daily and Monthly Benefits. Although many life/LTC plans offer an automatic inflation rider, often coverage is simply a percentage of the death benefit, paying out a $500,000 death benefit over 25 months (a $20,000 monthly benefit.) In many cases, it can make more sense to buy a very high monthly benefit than pay for 3 or 5% compound inflation in a stand alone policy.
- Calculating the benefit as a "pool of money" instead of "years of care." Another way the life/LTC plans position the LTC benefit is as a pool of money. Some standalone LTC plans still require a calculation of that pool by multiplying a years of care figure by the monthly or daily benefit amount, an unncessary and confusing step. Would you rather have access to a $250,000 pool of money or have a plan that pays $230 per day for 3 years? $250K sounds more impressive.
- Avoiding the "use it or lose it" argument. Life plans with LTC riders, of course, will pay the full death benefit if you die without using your LTC accelerated benefit. However, did you know you can add a life rider to an LTC policy? The name carriers use for this feature, of course, is return of premium.