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Understanding Your Clients’ Long-Term Care Insurance Options

If your client or prospect was going to make a choice for long-term care insurance (LTCi), what type of LTCi would they choose? A decade ago, most consumers would have opted for a traditional or standalone LTCi policy as protection against potential long-term care needs that could occur sooner or later in their lives.

Today’s LTCi options have become more flexible based on insurance carriers developing more diverse products that could better accommodate their needs during their retirement years. Standalone policies still provide cost-effective options, but consumers are looking for more than just LTC coverage from a product.

Enter the “newer” long-term care insurance options in the marketplace, which include hybrid long-term care with life insurance, life insurance with an LTC rider or accelerated death benefit, and some annuities that offer LTC provisions within fixed indexed annuity products.

Basically, the message to your client/prospect is the same – LTCi can provide protection to your retirement savings and loved ones if a long-term care situation happens to you. Instead of selling off assets to pay medical bills, long-term care insurance could be leveraged for those healthcare expenses without taking money out of the retirement fund.

Let’s get back to the questions your clients may have about LTCi by looking at a couple of product options generically with a quick summary for each. AIP Marketing Alliance has a financial professional approved chart available to licensed life agents, which covers these comparisons in much more detail.

  • Traditional/Standalone LTCi: This product provides the most LTC coverage at an affordable price, but only covers qualified LTC expenses plus, their premiums could increase
  • Hybrid LTC & Life Insurance: This product provides LTC with a death benefit, but this benefit is usually lower compared to traditional life insurance
  • Life Insurance with LTC Rider: A flexible product covering two needs (life insurance and LTC) which becomes a complementary piece to a client’s retirement strategy, but most carriers require proof of qualified LTC expense for reimbursement
  • Life Insurance with Chronic Illness Rider: This product has no upfront cost for LTC and is paid only if the benefit is used, but the policy has limited benefit payouts and could be subject to IRS limits

AIP Marketing Alliance believes you can start the process with your clients with a Life Insurance Policy Review (LIPR). This LIPR should occur at a minimum annually or even twice a year (when possible), especially if your client has a life event (marriage, the birth of children, job change, divorce, etc.). Review the policy and discuss potential options that could protect them and their loved ones in the case of long-term care events.

As a licensed life agent, you are providing LTC options based on the best interest of the client. Recently purchased life insurance or annuity products may already have the long-term care features needed. Sure, that phone call or appointment may be shorter than usual but keeping in touch with your client is essential in today’s competitive marketplace.

We hope this blog article provides some general information comparing LTC product options. November is Long-Term Care Insurance Awareness Month, and AIP Marketing Alliance has the carriers, products, marketing resources, and sales experience to help independent insurance wholesalers and agents sell LTCi products. For an illustration or to discuss LTC options for your client/prospect, please contact our Business Development team at (800) 783-5206 Press #2 or marketing@aipma.com.


This information is for educational purposes only. It is not sufficient to make a buying decision. Long-Term Care Riders are not available on every life insurance product, and not every LTC rider has the same provisions.

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For more than 40 years, AIP Marketing Alliance (AIPMA) serves as a premier life insurance and annuity distribution partner to provide full-service support to independent wholesalers, brokerages and agents from our Troy, Michigan office. Copyright 2022