Long Term Care vs. Short Term Care – What is the Right Answer?

Presented by Leonard Berthelsen

Most agents probably haven’t given much thought to this issue and quite frankly, I can’t blame them.  Long term care insurance has experienced slow growth over the past several years for a variety of reasons.  Lack of understanding the protection, underwriting challenges, cost of coverage which continues to increase, and then the ever-present rate increases on older blocks of business.  Long term care can still meet the needs of your clients; however, there is another consideration to think about.

Let’s take all the issues above and turn them into sales opportunities for 2016.  Short term care/recovery care products may have arrived at the right time.  They are easier products to understand and explain without all the compliance restrictions of traditional long term care insurance.  With limited benefit durations (generally no more than 360 days of coverage), underwriting risks are dramatically reduced for the carrier and the pricing reflects this.  Yes, short term care plans are relatively new to the market, but certainly fill a void that long term care has left.

Start 2016 off with a recommitment to address the needs of your clients regarding short nursing home stays, recovery care after an illness, accidents, or surgeries.  When pricing or underwriting challenges are dragging down your ability to place coverage, these newer shorter duration products just might be the answer.

Look for our promotions for the addition of Short Term Care/Recovery Care products or call your Sales Manager at 800-397-9999 now for details.

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