Let's get one thing clear from the start.  Notice in the title that I used the phrase “long-term care protection,” and not the phrase “long-term care insurance” (LTCI).  LTCI refers specifically to stand-alone LTC products that are filed as such.  The use of the phrase “long-term care insurance” is regulatorily restricted when referring to or marketing traditional LTCI.  For example, you cannot use “long-term care insurance” when referring to linked benefits products that have LTC benefits, or when referring to LTC acceleration riders usually connected to life insurance policies, if those LTC benefits have been filed under IRC 101(g).  That restriction applies to most of the LTC linked benefit products being offered today.

A new long-term care industry

Back when I started selling LTCI in 1991, the only LTC solution available was traditional LTCI, with or without home care benefits.  As the LTC industry steadily grew throughout the 1990s, it became defined by the performance of LTCI.  The sales of traditional LTCI products peaked in 2002 and has been declining since.  However, many still consider LTCI to be the driver of the industry.  It isn't.  The LTC industry, until recently, has been a product driven industry.

With the advent and steady growth of linked benefit product sales, the LTC industry has changed.  It is no longer product driven.  The LTC industry is now officially a solution driven industry.  Traditional LTCI is simply one of the solutions.  Those of us who specialize in providing LTC solutions are product agnostic.  Even though sales of traditional LTCI are waning, the LTC industry is growing through rapidly increasing LTC linked-benefit product sales.