Care takes: The Producer

By: Frank Morang, Regional Sales Manager, Empire & Brett Daniel, Regional Sales Director, Mountain

Frank:

Throughout this series, we've analyzed the perspectives of some of the people most affected by the care crisis-the consumer and the employer. We've learned that there's enormous benefits for both groups to receive/offer long-term care (LTC) benefits, with education (or a lack thereof) being a driving factor in one's perspective about LTC.

It should come as no surprise that LTC education (or lack thereof) is also a leading factor in the perspectives of our next stakeholder-you-the producer. We know that there's no opinion or perspective that's universal across the board when it comes to LTC. So, with my colleague and friend, Brett Daniel, we've come up with a few different producer perspectives on care we've seen in the industry, and the pros and cons that comes with each.

Take it away, Brett!

Brett:



They don't know about LTC / Think it won't have longevity as a product

I want to start off by saying that while at Trustmark we believe LTC benefits are trending in an upward direction, there are producers out there may not feel that way, and they have some valid reasons for this.

For starters, LTC (or rather, life with LTC products) products are still not as commonplace as other benefits. Aside from Trustmark, a life with long-term care product isn't standard for all carriers in the market, so it's possible that these individuals simply don't have as much exposure to the product. But there are also producers who have spent their entire careers working in the industry-who know about life with LTC benefits-that simply think the care crisis will not gain speed in the industry.

In my personal experience, this is the biggest misconception in the market preventing producers from acting. They believe it's a fad and will run its course. This isn't to say that they're not considering the future of the market. In the past, it's possible that some have seen other trends in the industry that didn't last, and it got them burned in the process. Specifically, the standalone long-term insurance market has experienced a major downturn which can contribute to these feelings. Those experiences may be why they're at a point in their career where it isn't worth it for them personally to rock the boat.

When you couple that with the someone who has solidified their go to market strategy and are experiencing success selling specific products - it's understandable why there's hesitancy to take a leap with life with LTC. But if you've kept up with this series, you likely understand that the care crisis isn't just a fad. What used to be a want for LTC benefits among consumers has very quickly transitioned to being a need.

For those of you who may be skeptical about offering life with LTC, or believe it's just a phase, I would encourage you seek out education about the care crisis regardless. You might not want to change your strategy right now, and that's fine. But you also want to make sure that you aren't burned by falling out of touch, either.

They're on the fence; not fully convinced

Like those discussed above, some producers are simply indifferent on the matter of LTC. They might understand what happened in Washington and feel there is a general need for LTC but aren't yet sold on how or why they should change their current go-to-market strategy. Or perhaps they're most worried about their core benefits strategy and the focus on life and long-term care just isn't worth it. If you think you fall in the category, or know someone who does, you're not alone.

Most, if not all consumers and employers understand the need for life insurance products, so it's easy to go to market with those products. You might find communicating life with LTC benefits harder at first, but here's when the saying "good things don't come easy" truly applies. Educating yourself on the need and wants of the consumer, coupled with your willingness to educate your partners and their employees on the need for LTC will show that you're committed to always trying to help those we serve.

If you're looking for a place to start that education, I'd look back to the Map of US states showing Medicaid spend and the percentage spent specifically on LTC in 2021. It can help you tell the story of why Medicaid is being used to combat the care crisis, and how it's not equipped to be the sole solution to issue. And, most importantly, it shows the need for these solutions. While we understand for many that core benefits (Medical, dental, vision) often take precedence, you're doing your clients a disservice if you're not at least exploring the need for long-term care.

The advocate



I call this producer "the advocate" because of their willingness to educate themselves on the care crisis, the direct needs of the consumers in the market, and know that tackling the care crisis through offering life with LTC benefits will be (or already is) a major contributor to their success. But if you're an individual that falls in either category above, you might be thinking, "What's this person know that I don't?"

Well, the biggest insight an advocate can tell you is that the market has moved away from traditional individual LTC plans you've seen in the past. It's when you combine life insurance with LTC benefits that many of the advocates have seen success, and there's a couple reasons for that.

1. Guaranteed Issue (GI): With hybrid products like Trustmark Universal Life with LTC or Trustmark Life + Care (or others in the market), there isn't an underwriting process typically seen in individual LTC plans. Because it's attached to a life insurance policy, you can access the benefit through GI offering, which makes the enrollment process smoother for everyone involved.
2. Flexibility: In the case of Trustmark, these products offer much more flexibility for the consumer to choose how they want to use benefits. For example, the care benefits on Trustmark Life + Care allow the policyholder to switch between family and professional caregiving as needed. And if they have death benefit restoration rider as well, the policy restores the death benefit used to pay for that care. Carriers are finding all kinds of way to provide and enhance the protection available to consumers.
3. Opportunity to utilize benefits: Because consumers get access to both a life and LTC benefits, it provides greater certainty a policyholder will see value from the product- offering themselves and their families peace of mind now and in the future.

In addition to general product knowledge, advocates are constantly monitoring and educating themselves on the latest LTC legislative updates in their territory. Even if they haven't fully switched to offering life with long-term care as part of their strategy, they're aware of what legislative updates have occurred in their state(s) and are ready to make moves if/when legislation passes.

Frank:

Regardless of your outlook on the need for care solutions as a producer, the biggest producer takeaway is that LTC education will always put you in a favorable position to succeed in this industry. Whether you choose to sell life with LTC products or not, your knowledge on the care crisis alone will be a positive contribution to helping solve the issue.

To wrap up our series on the perspectives of LTC, I'll be addressing the perspectives of those currently in the hot seat-the legislators. I'll discuss their views on the crisis, the insurance industries response, and why there are different approaches in each state.

To stay up to date on Care takes: Trustmark perspectives on long-term care and other important LTC legislative updates from Trustmark Voluntary Benefits, be sure to follow us on our LinkedIn and X.

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