It is that time again where many of us make promises to ourselves to hopefully reform our most aberrant concerns. These self-reflective and intended to be self-fulfilling prophecies are usually based on our oldest and most worrisome personal shortcomings. Topics which we have probably unsuccessfully attempted to address in the past. Therefore not categorizing by severity of concern or intentional personal bias, I would simply like to once again list those impediments and required resolutions which clearly block a path forward to solve America’s chronic illness conundrum.
- Let’s begin with the observation that usually gets me booed from the stage. Our industry far too often takes the path of least resistance. ”Universal Certification” however achieved needs to be moved forward. Hiding behind a loophole in suitability provisions so that health riders masquerading as chronic illness so called “living benefits” life riders that are long term care insurance in all but name must stop. How can anyone holding themselves out as a professional planner helping to alleviate a severely exposed national risk not be certified and regularly trained to offer any and all solutions to the problem? Because of regulatory neglect and company timidity to upset their field force, far too many conversations about dealing with long term care concerns are being hidden behind an intentional façade of oversold IRC Section 101g life riders. Fiduciary responsibility is always a double edged sword, and there should be no avenue of escape or avoidance for professional chronic illness planning.
- Please explain to me why current “qualified” savings of any kind should be unavailable to protect the very retirement that creates the tax exercise in the first place? At the very least a separate and “new” qualified long term care account should be available on a stand-alone basis or in combinations with other insurance disciplines. If ever there was a governmental need to influence behavior it has to be the giant sucking noise created by the drain of Medicaid dollars from state and Federal coffers. Any and all existing privileged tax strategies should be available for long term care expenses beginning with FSA’s and IRC Section 125 privileges.
- There must finally be a clear understanding that those with the financial ability have multiple options to leverage as much of the risk as they have the presence of mind and care for their family to accomplish, and no one really cares which product or combination of product strategies they may choose as best or even most efficient. For those who chose to do nothing I can only say: “The only thing necessary for the triumph of evil is for good men to do nothing.” Edmund Burke.
- The much greater issue is how much supplemental coverage is necessary to prevent someone from ever being dependent on government largesse. There is nothing more important than quality of care and freedom from government control. Every time I hear “Yea but, what about Medicaid?” my response is spontaneous—“What about it? I am here to do everything in my power to make sure that never happens to you.” How little does it really take to add to what is already in place to provide someone with those most important choices?
- We must continue to press for much greater flexibility from the NAIC including: Expanded deferral periods; reduction in benefit periods; and the allowance of any creative structure that allows for sharing of financial risk with individuals—such as higher deductibles and coinsurance limits as well as the sharing of the morbidity and investment risk with consumers.
- For far too long, far too many who wanted and needed our help have been told: “Sorry, you waited too long.” (And now the entire burden must fall squarely on you and your loved ones.) We can do better. Wasn’t independent brokerage founded on finding alternative coverages for those who had developed medical impairments? Why do we continue to tolerate an industry where 40 percent of traditional applications are declined and no one cares to meet the problem head on?
I do realize I may have already worn out the above themes in this column. It was nonetheless at least for me a healthy, cathartic experience and a rare privilege to once more rage against the darkness. Obviously, what continues to amaze me is the entrenched inertia and the continued fantasy that somehow this problem will solve itself. Recent information from the SOA has made it crystal clear that we have resolved pricing concerns involving persistency, benefit selection and investment return. Why is there still a lack of adequate industry commitment? What we must do is take to heart the persistent demand from consumers for our help, and that when you add stand-alone, combo life/annuity and short term sales we have just had another banner year in the wonderful world of chronic illness risk abatement. Although once again it is likely that far too much protection was taken from us and not nearly enough offered by us.
Other than that I have no opinion on the subject.
