News

Healthcare a concern for investors: poll
(February 15, 2006) The future of Canada's healthcare system is a source of concern for many when planning their retirement, according to a survey from TD Waterhouse, and that level of concern is rising.

In a client poll, the brokerage found 61% of respondents expressed concern about rising healthcare costs, compared to 54% last year. The potential for privatization of services was cause for concern among 56%, compared to 50% last year.

"The continuing debate in Canada over health care funding, privatization and two-tiered medicine is clearly having an impact on investor expectations and concerns," says Patricia Lovett-Reid, senior vice president, TD Waterhouse Canada. "This is a rational response to Canada's aging population and growing concerns over how we will meet health care costs."

New US study reveals how long long-term care really lasts
Long-term care insurance that provides a benefit for a limited period, such as for three years, is considerably less expensive to purchase than unlimited (lifetime) benefits. According to a study of long-term care claims released by the American Association for Long-Term Care Insurance, that limited protection may be all that most people need.

The study examined both open claims and closed claims and found that only 14.4% of closed claims lasted longer than 24 months, with 33.2% of open claims lasting longer than 24 months. Only 5.6% of closed claims lasted longer than 36 months (16.2% for open claims).

The study results would seem to suggest that less expensive limited coverage may be adequate for the majority of individuals...and is certainly better than no coverage at all!

Copies of the study can be purchased for $20. Mail payment to AALTCI – Claims Study 3835 E. Thousand Oaks Blvd., Suite 336, Westlake Village, CA 91362.

Conning Research: Long Term Care Insurance - Rising Opportunities, but Still in Search of Sustained Profitability
HARTFORD, Conn., Feb. 6 /PRNewswire/ -- The Long Term Care Insurance industry is maturing but still searching for sustained profitability as it works to market a complicated product offering, according to a new study by Conning Research and Consulting, Inc.

"Long Term Care Insurance has begun to break out of its limited distribution network, and is increasingly being understood to be part of a financial planning and lifestyle planning program, which may well be the path to sustained profitability," said Stephan Christiansen, director of research at Conning Research & Consulting. "Yet the Long Term Care Insurance industry is sorting through a number of issues, including product and actuarial complexity, high producer compensation, and evolving consumer perceptions."

The Conning Research study, "Long-Term Care Insurance: Opportunity Knocking -- Again?" outlines recent industry performance and presents the emerging issues that must be addressed before long term care insurance can take its place as a financially sound and consistently profitable product.

"Long Term Care Insurance is now a $6.7 billion industry with a five-year compound annual growth rate of 17% through 2004," said Jim Smith, analyst at Conning Research & Consulting. "However, almost half of that growth has been fueled by rate increases, and new sales have begun to decline steadily. The industry continues to seek the right combinations of product innovation and distribution to respond to the demographic opportunity."

"Long-Term Care Insurance: Opportunity Knocking -- Again?" is available for purchase from Conning Research & Consulting, Inc., by calling (888) 707-1177 or by visiting the company's web site at www.conningresearch.com.

Views

When I read the following letter, I contacted Dale Reynolds and spoke with him.

Letter to the Editor: Marketing LTC Insurance Is Not About Money Or Statistics
Dale O. Reynolds writes: This is in response to the November 2005 feature article in LTC e-Wire on the last 4 years in the LTC industry, written by Trevor Thomas. I have been involved in the LTC industry since 2001 and have been licensed since June 2004. I am 62 years old and specialize in marketing LTC insurance.

My observations are the following:

1. Given the size of the potential marketplace, I am amazed at the lack of TV or print advertising by the major players in LTC market.
2. I am appalled at the level of apathy/lack of interest from tax professionals, financial planners and estate attorneys in wanting to discuss LTC issues or make recommendations to their clients or even a professional like myself.
3. I don't understand Mr. Dobbie's comment (in the article) about shopping prices. A good marketer should provide a prospective client with at least 3 quotes. I can do this in minutes. Harder to shop? No way…with the software that’s available.
4. Because I specialize in marketing LTC products, I don't find them complicated at all. You have to do your homework. If someone doesn't want to do that, they shouldn't be selling LTC.
5. Marketing LTC products isn't about money or statistics, it is about having a plan. This is the "rational" approach. My success has been from equating every day life (people have a plan for everything) to what they are not doing and the financial and emotional risks they face if they don’t have a LTC plan. People make marriage plans, educational plans, college plans, financial plans, vacation plans, golf plans, daily plans, etc. Once they realize their retirement nest egg is exposed, it becomes a no-brainer.

Dale O. Reynolds, Jr. Principal The Stockbridge Group Redwood City, Calif. dale@thestockbridgegroup.com

Karen’s comments: In our conversation, Dale and I agreed that although marketing long term care insurance remains a challenge in both our countries, the path to success is definitely visible. Advisors need to see the writing on the wall and educate themselves about life planning. Selling new products takes vision, time, education and above all, persistence!

PRESS ON
NOTHING IN THE WORLD CAN TAKE THE PLACE
OF PERSISTENCE. TALENT WILL NOT; NOTHING
IS MORE COMMON THAN UNSUCCESSFUL MEN
WITH TALENT. GENIUS WILL NOT;
UNREWARDED GENIUS IS ALMOST A PROVERB.
EDUCATION WILL NOT; THE WORLD IS FULL OF
EDUCATED DERELICTS. PERSISTENCE AND
DETERMINATION ALONE ARE OMNIPOTENT.

O. William O'Quin, CLU, ChFC, RFC
Financial Services Online
225-387-9845
boquin@ix.netcom.com

What LTC News and Views users are saying:

Karen,
(CLTCC) is the Corporation for Long Term Care Certification that work with financial professionals to help them make long term care planning part of their practice. We certify these reps during a two day class and they can earn their designation (CLTC) Certified in Long Term Care after taking an exam at Prometrics. You can read more about our organization at www.ltc-cltc.com.

I also work with The Guardian Life Insurance Company as the Director of Long Term Care Insurance. We have offices in Ohio, West Virginia and Pennsylvania with around 150 financial service representatives.

Your information is outstanding because it deals with caregiving and its affect on families. I will credit you anytime I use any of your information…

Thanks again,

John
John V. Fontana
Luttner Financial Group
Pittsburgh, PA
john_v_fontana@glic.com