In an ongoing effort to maintain the commentary integrity and political distribution neutrality of this column, it is important to disclose that on a “consulting” basis my partner Barry Fisher and myself have been directly involved in the creation and management of a new, and we certainly believe innovative, approach to helping those seniors and their adult children who find themselves facing an impending claim without adequate protection already in place. Our efforts to help coordinate a new private non-denominational field force will be outlined in detail at this year’s ILTCI meeting in a panel presentation with all the stakeholders in the project titled: “Long Term Care Insurance for People Who Failed to Plan.” We have found ourselves helping to create from scratch what we believe will eventually become a neutral and independent standing private army of professionally certified, trained, managed troops. Thereby creating a coordinated national presence to address the serious funding needs of all those standing before the emotional and financial precipice that has left far too many Americans without strategic planning solutions when they need them the most. It is our intention to do all we can to make sure that at the moment in time that the question arises—“How will we pay for the level of care that is needed and desired?”—a Care Funding Specialist (CFS) is there to answer all questions as to what may be possible.
At the point in time when a claim is immediately pending or already in play there are limited choices to pay for care. At that time it should be everyone’s intention to do everything possible to remain a private pay patient with the highest possible level of service. Even if the endgame is to fall back on government assistance, every day that a claimant remains free of government control and not the victim of inherent benefit limitations created by discounted funding is a day of victory for personal choice and quality of care. The ability to leverage each available dollar to accomplish that goal should be explored and investigated thoroughly. A Care Funding Specialist will be prepared to intercede when the claimant and their adult children are anticipating planning their approach to preparing for what may be an expensive and open-ended economic adversity.
When a claim falls upon those who have not adequately prepared, there are only a few possibilities available to pay for needed care. A CFS will be trained and certified to either make informed recommendations as to where to access professional assistance or to address directly enhanced financing possibilities and to then help where requested. These include reverse mortgages, VA benefits and bridge loans in the former category, and direct offerings in the form of medically underwritten single premium immediate annuities and the present value of dormant life policies in the latter.
Please understand this marketing project is very much a work in progress and a subject to which this column will return as the program develops. There are a number of marketing issues which will continue to make this an exciting and evolving endeavor:
- This is a brand new and as yet unexplored market. New and different is always a challenge.
- The opportunity is as much about family members as it is the care recipient.
- The care recipient is usually not making the financial decisions.
- The need is immediate and time sensitive, and ultimately funding strategies are limited and relatively finite.
- Planning alternatives exist in a severely regulated consumer protection environment.
Providing insurance and life settlement options is fraught with fiduciary concerns which can only be addressed with sufficient education and certification processes in terms of regulated requirements for LTC, annuities and life settlements. It is also important that the product vendors conduct their own controlled training processes. Leveraging assets requires risk. The burden of understanding and acceptance of risk falls most heavily on the heirs. The potential for substantial loss is real. This inherent truth must be clearly understood and acknowledged by all concerned. A Care Funding Specialist will be provided with marketing and sales support from the Program Director. The Program Director will be responsible for maintaining the credentials of those recommended to the program. Once all credentials and certification are in place, a CFS will be provided with sponsored center of influence “leads”. Introductions and appointments are then initiated from an extensive inventory of endorsed relationships with nursing homes, assisted living facilities, home care agencies and elder law attorneys. These local connections are to be established and maintained on a permanent basis. All follow up sales activities are monitored and documented by the Program Director. As long as the CFS maintains adequate service parameters, their territorial access will be protected. The national marketing program is responsible for SPIAs medically underwritten specifically for caregiving needs and life settlements used exclusively for caregiving purposes.
The opportunity to be of service clearly exceeds the direct funding needs of the care recipient. The relationship between those who take action to protect themselves earlier in life and intimate contact with a caregiving event involving a loved one has been well documented in every consumer research exercise for the last 20 years. The corollary sales available to a CFS will be abundant and focused. Our initial efforts to establish a standing private army of trained and field-coordinated professionals available to help those most in need has been challenging. Our recruitment efforts have been encouraging and initial sales activity is certainly promising. Until now the industry has only been able to address the care conundrum for those with sufficient wealth and health to be able to plan ahead earlier in life. The ability to now approach the problem from the exact polar opposite end of the caregiving spectrum for those who failed to plan is, in my humble opinion, a cause for celebration.
Other than that, I have no opinions on the subject.
