As for when advisors should start that conversation, Nash said it is never too early but said a good time is around the client’s 50th birthday, when the concern for long-term care begins to manifest. However, the advisor cannot be the only one to address the topic.
“I do think that there is some responsibility on the client,” Nash said. “But some of that is around first having a conversation with their family so they can have an educated well-intentioned conversation with their financial professional.”
There aren’t any triggering events that prompt the talk of long-term care such as when a new child arrives, it prompts a conversation about saving for college. However, an outside event could put the topic at the forefront in an investor’s mind.
“It can come when a person has a personal experience that they can relate to,” Nash said. “Once somebody has a personal experience … there is a definite sense of urgency ... it creates an ‘a-ha’ moment that is a catalyst for a conversation.”
Lincoln offers a series of services to help advisors engage their clients in the discussion about long-term care including an expanded team who will help the advisors determine when to have that talk.
The firm also has other resources available such as tools that provide a real-world cost break down for how much care facilities cost throughout the country.
Finally, Lincoln offers its MoneyGuard product suite of products, which focuses on long-term care planning. They help accommodate advisors’ clients who want to start saving for long-term care. The firm rolled out a unique version of its fixed income hybrid long-term care product to tremendous success.
While the fixed version had been the norm for years, the firm heard from advisors that there is a need for a flexible version. So, in February last year, it launched the MoneyGuard Market Advantage, which is the first-ever variable hybrid long-term care product.
“It fits in with the value proposition that advisors built their business on,” Nash said. “This market gives advisors and clients the ability to grow their benefits tied to market participation.”
Since the product launched in February of 2021, it has accounted for 45% of sales within the firm’s MoneyGuard product suite. In addition, about 30% of the advisors using the product are new to the discussion about long-term care, according to Nash.