Incubating Long-Term Care Sales: Wake Up the Kids!
by Jim Heyer

"I have to check with my children," were once dreaded words in the long-term care insurance sales process. When the kids get involved with Mom and DadÕs decision to purchase long-term care insurance it can put the sale in jeopardy. The children may object to the cost of the coverage and advise Mom and Dad to save their money with the assurance they would take care of them if they ever needed it.

Ironically, after Dad passes away and cognitive problems keep Mom from living alone, these same kids could end up scrambling to preserve their inheritances by trying to get her on Medicaid. After all, they certainly shouldn't have to pay for her care any more than they should permit Mom's assets to be taken away by the nursing home. It's funny how nursing facilities are commonly viewed this way even though they just want to get paid for their services just like any other business or healthcare provider.

Well, it's about time we get the children to wake up to reality and get them on board with long-term care insurance. Rather than viewing them only as potential deal-busters, with a little education, you should be able to make them proponents of the solution you are trying to deliver. Let's start with the basics. Long-term care is not free someone's got to pay if their parents end up needing it. Get them to think about what this might mean to their parents. Then make them understand what this might mean to them.

Are your clients' children promising to take care of their parents if the time ever comes? That's understandable and admirable. Mom and Dad are the wonderful people who raised, nurtured, and sacrificed for them and the kids are prepared to show the same love and devotion if needed. Without a doubt, many children lovingly provide this type of care to their parents, but your clients' children should understand the challenges that can come with being a caregiver.

Start by getting your clients' children to think about what they are committing to before they make this promise. Get them to recognize the likelihood that their parents will need long-term care at some point. Of course, you will be armed with the relevant statistics and can inform them accordingly.

Once they accept that there is a very good chance that at least one of their parents will need care, talk to them about what long-term care really is. Ask them to consider whether they are prepared to handle the emotional, physical, and financial demands that are frequently associated with caring for an aging parent who has lost their independence. Are their jobs flexible enough to miss time from work? Can they afford to miss time from work? Are they prepared to cut into the time they would spend with their own kids or grandkids or give up activities they enjoy? Can they withstand the rigors of getting Dad out of bed, giving him a sponge bath, and getting him dressed when all he wants to do is exactly the opposite? Can they endure getting Mom back to bed in the wee hours of the morning because she has gotten her days and nights mixed up due to Alzheimer's disease?

Is there an alternative to their providing care? Sure, there are professional caregivers. Forget about the nursing home of old, we are talking about home healthcare providers and assisted living facilities. But, we are back to talking about who is going to pay for it. These things cost money some times lots of money. Illustrate to the children how much care costs today and how these costs are likely to rise. Their folks probably spent a lifetime accumulating their assets and were so proud to able to pass them on eventually. Surely, they would hate to see these assets evaporate because of unplanned long-term care expenses.

Now we need to get the children to understand a viable option can help protect what their parents have worked so hard for it's that long-term care insurance policy they may have dismissed as unnecessary. The kids need to recognize the value of long-term care insurance coverage. Encourage them to consider what it could mean to their family if their parents needed long-term care. By all means, the kids can get involved in the long-term care insurance purchase process, but it should be to ensure that Mom and Dad are buying a policy that makes sense for them, not to squash the deal because of shortsightedness or ignorance. We should make sure we have done our part to ensure that it does not happen.

Once the children truly understand what they and their parents have at stake, they should become strong allies in the long-term care insurance-buying process. We need only get them to understand that long-term care insurance can protect more than their parents' assets; it can protect them as well.

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Jim Heyer is Senior Vice President of Risk Management, Penn Treaty Network America; email: jheyer@penntreaty.com