Long Term Care Insurance Expert | Honey Leveen | Houston, TX

Helping you make informed LTC decisions

 
Request a Free, No-Obligation LTCi Quote
  • HOME
  • ABOUT
  • WHY LTCi
  • LTCi FAQs
  • PROCESS
  • TESTIMONIALS
  • ARTICLES
  • MEDIA
  • RESOURCES
  • BLOG
  • VLOG

There’s No Planning Without Communication

July 22, 2019 by Honey Leveen Leave a Comment

long term care planning requires communicationCommunication is one of the most important factors in any significant relationship, right? And yet it is usually absent or at least faulty when it comes to sharing important information about health and finances. Sometimes the parents hide information from their children or the kids keep details from their parents. Or spouses feel the need to protect one another from the truth of their declining health.

In a recent issue of the newsletter published by the Society of Actuaries, I read an article written by my friend and colleague, Eileen Tell. Tell is an academic and a researcher. Her article is based on findings from research she conducted for the Office of the Assistant Secretary of Planning and Evaluation (ASPE), part of the U.S. Department of Health and Human Services.

In the article, Tell summarizes observations from consumer focus groups conducted as part of that study, intended to better understand a family’s search process for long term care services. The findings of the study support the same experiences I observe among my own clients.

“A common theme heard in all the groups was the lack of awareness of the decline in either physical or cognitive health of their loved one until this acute episode occurred.” By shielding family members from important facts, most are caught by surprise when there is a sudden decline in their health.

In many cases, it takes a major event to trigger family involvement. A fall, sudden illness, a stroke, or the unexpected need for a new primary caregiver. Family members find themselves unprepared to manage the important decisions that require immediate answers.

Communication Has To Happen

George Bernard Shaw wrote, “The single biggest problem in communication is the illusion that it has taken place.” You may wish that it happened. You may even think you were clear. But until all parties have the details and understand the situation, there’s no way you can properly prepare.

The study groups reveal the same patterns I see with my clients:

  • A lack of awareness of the decline in their loved one, until an acute episode occurred.
  • Aging parents typically shield their adult children from the realities of their limitations.
  • Where mom or dad ultimately winds up receiving care is very much a function of finances.

Sometimes, family members begin to address the sensitive subject of long term care, only to be met with silence, half-answers or a complete change of subject. Especially when it came to talking about paying for that care.

This type of denial is so widespread, that I’ve written many dozens of blogs about it.

I will never understand why people elect to re-act, rather than pro-act. I’ve seen many people who could have afforded long term care insurance (LTCi), but they refused to consider it. As if the very conversation was more taboo than their actual future without plans. LTCi can help cover a lot of future costs. Some often include care coordinators, too.

For my clients, LTCi is often transformative, a game-changer. This makes my career career hugely satisfying.

It’s rare to find families who are composed, level-headed and functional when long term care is needed. One thing should be obvious, though. When someone buys LTCi, they are stacking the deck in their favor that their future will unfold in a more dignified, graceful, considerate and affordable lifestyle.

Click here to receive your free, no-obligation quote for your customized long term care policy.

 

Filed Under: 3 in 4 Need More, Age related brain loss, Age related cognitive impairment, Elephant in the Room, Helpful Information About LTC, I'll Just Self-Insure, Information About LTC Tagged With: Denial, Eileen Tell, Living in Denial, Long Term Care insurance, LTC Insurance, LTCi, SOA, Society of Actuaries, www.soa.org

Ding Dong the Wicked Witch of LTCi Rate Hikes is Dead

September 9, 2016 by Honey Leave a Comment

The following is a guest blog by my friend and highly respected LTCi colleague, Ron Hagelman, who can be reached at rhagelman@broadtowerinsurance.com, www.BroadtowerInsurance.com.

The article laments the undeserved, unintended ill-will earned by the LTCi industry. Ron’s sentiment matches my own and expresses the widespread confidence of LTCi actuaries that LTCi pricing is now extremely rate stable. Here are blogs I’ve written about rate hikes.

Here is info on the Society of Actuaries study Ron refers to.  Thanks, Ron, for allowing me to re-publish this.

Wicked Witch“There are simply those who, even after repeated exposure to the glare of the truth, are subsequently unable to admit they were wrong. Our industry suffers seriously from this flaw in human behavior. Far too many have conveniently pointed the finger of blame at those responsible for our lifeless interest environment (whoever those people are) and not taken sufficient responsibility for the “mistakes” that were made in our past pricing assumptions. “We” got it way wrong and the damage done to all concerned is much more extensive than many are willing to admit. Stand-alone LTCI sales are a shadow of their former selves. The destruction to new sales caused by repeated rate increases is pervasive and insidious. We have unfortunately created a general public malaise and aversion to all things LTCI both in terms of those who we said were the smart ones for leveraging their risk early and those prospective buyers considering the security of policy ownership. What is of course much worse is that we have successfully decimated the ranks of those willing to help sell the product. The age-old equation is now painfully obvious to all concerned: rising premium creating falling sales culminating in a drastically reduced field force. This artificially created sales spiral is much more than just a self-fulfilling prophecy. We must first admit that it is also a self-inflicted wound.

We must first freely admit and acknowledge our own culpability. Frankly, we over built benefits, underpriced mortality and morbidity, and overestimated potential sales in the initial rush to achieve market share. We completely missed the whole side of the barn in terms of persistency and honestly we were basing our future experience on far too little actual claims data.

That Has All Changed!

“Ding Dong the Wicked (Rate Increase) Witch is Dead!” The Society of Actuaries has recently completed a research project designed specifically to evaluate the historical potential for rate increases.   The research clearly indicates that products priced today are much less likely to have future rate increases. What is absolutely certain over the last 15 years is that the need for long term care services and support, the growth of assets and income needing protection, and the certainty of a need for expensive care is now greater than ever. We have also accumulated a substantial volume of claims information upon which to more accurately base current pricing.

The conclusion of the SOA analysis is that confidence in current pricing “should” be at an all-time high. Claims data is no longer scarce. We have an abundance of claims to evaluate at this time, meaning we have reduced the potential likelihood of future rate actions. According to the SOA, “Premium stability on today’s LTCI prod- ucts is at its highest.” The SOA identified a number of benefits of the new pricing stability as the study found that, “Claim experience nationwide in 2014 was 70 times more credible than in 2000.” The fact that we now have a history to evaluate has laid the groundwork for future carrier optimism concerning this market. Pricing stability contributes to:

  • Greater carrier confidence in assumptions concerning lapse, morbidity and mortality.
  • Less operational administrative risk translating into lower expenses. Constant change is expensive.
  • Less friction on the regulatory level and potential stress on reserves.

Restoration of consumer confidence at this point is a massive undertaking.

The Study also illuminated the validity of what we knew were serious contributing factors:

  • Long term investment return has fallen dramatically from 6.4 percent in 2000 to 4.6 percent in 2014.
  • Commissions have crept up during the same period of time, emphasizing first year compensation, and while administration expenses have declined.
  • Based on experience, allowable margins for error have also increased.

What is important is that we have learned from our experience and that the relative predictability of current premiums has risen from a low of a 40 percent chance of a future need to raise premiums to only 10 percent today. The study also pointed out that the regulatory environment has provided evolving strength by implementing the necessity of providing adequate margins for adverse circumstances under the NAIC Model Regulations beginning in 2000 and subsequently enhanced in 2009 and 2014.

The journey now standing before us must certainly begin by joining hands with those new friends willing to take that first step on the yellow brick road as we must ask the wizard to help us restore the faith of consumers and agents alike. Together we must recognize that we have indeed survived the flying monkeys and that our strength of purpose to find a home for the risk that will not be ignored was always built upon our brains, our heart and our courage.

Other than that I have no opinion on the subject.”

Filed Under: Helpful Information About LTC, I'll Just Self-Insure, Information About LTC Tagged With: LTCi rate hikes, LTCi Rates, Ron Hagelman, Society of Actuaries

Impurities

February 11, 2016 by Honey Leave a Comment

I am a huge, long-time admirer of Ron Hagelman.

ImpuritiesIn his February, 2016 Broker World Magazine column titled, “Impurities,” Ron compares the long-term care insurance (LTCi) industry’s evolution to that of classic sculpture. Rodin’s painstakingly slow, thoughtful, methodical, reflective chipping away at a plain block of marble resulted in the timeless magnificence of his sculptures.

Similarly, the LTCi industry has also evolved and reacted over many years with thoughtful, holistic tweaks, adjustments and adaptations to its products.

Ron and I are both very hopeful about today’s LTCi products. We like them, they’re effective, they work. I’ve seen hundreds of claims get paid to my policyholders.

Ron cites the 2014 Society of Actuaries LTC Section study “LTC New Business Pricing: How Safe Is It?” as evidence the LTCi industry has learned from experience. Here’s a blog I did about this study. Today’s LTCi products are priced correctly. Rate hikes on today’s policies should be unusual and not of great consequence.

Here is Ron’s column in its entirety:

The inherent beauty of universally recognized “art” is something that is created as a process of elimination.  Michelangelo released David from a solid block of inanimate marble. By methodically chipping away and discarding what was not necessary, something of permanence and exception was revealed. By systematically removing impurities something of transcendent truth may be discovered. The artist involved is actually only a facilitator guided by previous rules of engagement and extensive experience in the pursuit of lasting accomplishment.

Although it may be a stretch to compare the current residue of our grand LTCI experiment to the artistry of Auguste Rodin, it is impossible to ignore our ongoing intention to create something of substance and beauty. Our industry’s dedicated attempt to define and serve a public outcry to diminish the financial and emotional impact of unattended and ill prepared chronic illness risk has certainly represented a historic process of elimination. We have accumulated substantial experience and we have consistently removed the parts that were not working. If it was superfluous, ineffective, overpriced or undersold it has been trimmed away. Our 20-plus year hard headed crusade to expose the reality of the risk and identify a cost effective insurance management tool may be finally beginning to reveal an object of permanence and purpose. Public and private initiatives to reform and improve the market have begun to narrow their focus and solidify around the essentials of future success:

• All the moving parts require attention and some form of structural cooperation between the insurance industry and imbedded governmental support will be required.

• Most claims are fairly small and middle market benefits need to focus on upfront expense and immediate support. By the same token the potential for catastrophic risk must remain at the heart of the individual sale for the more affluent.

• Regulatory reform is now mandatory from the NAIC to state and federal legislatures. This should include greater benefit flexibility and a willingness to consider innovative ideas. Why not allow immediate long term care access to current tax preferred accounts?  Additional tax incentives should also include an enhancement review of existing tax deferrals, premium deductions and credits.

Perhaps the clearest evidence of our ability to remove impurities can be found in the recent research conducted by the SOA’s LTC Section and the ILTCI offering LTCI New Business Pricing: How Safe Is It?  The primary question asked was to identify any differences between past and current pricing stability. I don’t think anyone would argue with the notion that rate increases are the primary scourge of consumer confidence and lackluster sales. The question is: Have we learned from our marketing  mistakes and our growing volume of claims data?  The truth is we have learned from experience.  We do have more information to fine tune pricing assumptions.  We are offering less risky product and the actuaries are using better modeling tools. Rate increases are, of course, the result of the inherent clash of current reality versus the initial assumptions concerning lapse rates, morbidity and mortality. The research team looked at three dates for comparison purposes (2000, 2007 and 2014).  Our current volume of claims experience has taught us that our morbidity experience was somewhat worse than anticipated over time. Our mortality rates are now more conservative, and as you well know our lapse rates are now much more conservative. The companies have learned from each other and  premiums have stabilized with very little difference today in pricing between carriers. The bottom line is we simply have much more information on which to base future assumptions. For example, we are able to evaluate 16 times as much data in 2014 as in 2000 for all policy years and 70 times as much claims information. The reliability of current pricing as it relates to the possibility of future rate increases has increased dramatically over time. In 2000 the chances of future rate increases was about 40 percent, in 2007 it was 30 percent.  However, in 2014 it was only 10 percent. The profitability of the product has also increased—caused by bone on bone lapse assumptions, better understanding of the claim and a low predictable interest rate environment.

We do apparently learn from our mistakes. We can adjust to new realities. We do profit from accumulated sales wisdom. It’s not getting any easier, but it does seem to be emerging from relative chaos into a clear and trustworthy vision sculpted and solidified by experience.  We  have all accumulated our share of marble dust helping to create a transcendent image void of disfiguring impurities. We may yet gaze upon a sculpture that will withstand the test of time.

Other than that I have no opinion on the subject.

Author’s Bio
Ronald R. Hagelman Jr., CLTC, CSA, LTCP
CLTC, CSA, LTCP, has been a teacher, cattle rancher, agent, brokerage general agent, corporate consultant and home office executive. As a consultant he has created numerous individual and group insurance products. A nationally recognized motivational speaker, Hagelman has served on the LIMRA, Society of Actuaries, and ILTCI committees. He is past president of the American Association for Long Term Care Insurance and continues to work with LTCI company advisory boards. He remains a contributing “friend” of the SOA LTCI Section Council and the SOA Future of LTCI committee. Hagelman is president of Broadtower Insurance Solutions, a national IMO helping BGAs enhance LTCI production. Hagelman can be reached at Broadtower Insurance Solutions, Inc., 156 N. Solms Rd., New Braunfels, TX 78132. Telephone: 830-620-4066. Email: rhagelman@broadtowerinsurancesolutions.com. Website: www.BroadtowerInsurance.com.


Filed Under: Helpful Information About LTC, I'll Just Self-Insure, Information About LTC Tagged With: Broker World Magazine, Long Term Care insurance, LTCi, Ron Hagelman, Society of Actuaries

Long-Term Care Insurance Has a Bright Future

April 17, 2015 by Honey Leveen 2 Comments

LTCi ConferenceI recently returned from a national long-term care insurance conference.

I noted the mood at this year’s conference seemed a lot less pessimistic about the long-term care insurance (LTCi) industry than it was last year.

In 2014 we saw continued poor press coverage of LTCi. Media gave mostly inadequate, usually negatively slanted, and sometimes incorrect explanations of LTCi rate hikes, with little advice on constructive ways to ameliorate them. New sales of traditional LTCi decreased. We saw higher premiums, tighter underwriting, and LTCi carrier withdrawals. 2014 was the worst year I can remember for LTCi in my 25 year-long career.

In short, the LTCi market just couldn’t get any worse than it was in 2014.

At the conference I learned that there were more legitimate reasons than my senses alone, to be hopeful about the future of LTCi. While my observations are based on anecdotal experience, it was very reassuring to learn that actuaries agree with what I think most full-time LTCi marketers observe.

Here is why there’s cause for optimism about LTCi:

The problem of who will provide LTC and how to pay for it is not going away. In fact, it’s like a freight train coming at us.

The LTCi market is now expanding, no longer contracting; two new LTCi carriers are in the process of entering the LTCi market.

In the news you will now find plenty of stories advising people that Medicare cannot and will not pay for LTC. You will also find articles about looming budget shortfalls and cutbacks. You will find stories graphically describing the sacrifices families make to provide care for loved ones who don’t own LTCi. You will find stories about our rapidly aging population, lack of caregivers, and impending Alzheimer’s epidemic. After all these years, most journalists still have scant understanding of how LTCi works; LTCi is seldom mentioned in news stories and still doesn’t get the accolades it deserves. But all other indications look good for the future of LTCi.

In his general session presentation at the ILTCI Conference, Roger Loomis, an actuary with ARC (Actuarial Resources Corporation) explained why I believe my suspicions about LTCi’s brighter future are correct. Mr. Loomis’s presentation was about the actuarial outlook on the stability of current LTCi rates. He made several key points.  Higher LTCi prices are obviously more stable. The industry has now had time to learn and benefit from its experience. The LTCi industry has more data to support pricing assumptions, less risky product designs are being offered, skill at managing LTCi is better now, and there are better modeling tools. Mr. Loomis used reporting from seven large insurers who have been in the LTCi market continuously for at least 15 years to back up his statements. He concluded that LTCi presently sold has a relatively low (approximately 12%) probability of a rate increase, due to near rock-bottom lapse and interest rate assumptions, plus other factors.

Anyone wanting the slides from Roger Loomis’s presentation should email me at honey@honeyleveen.com.

Filed Under: Helpful Information About LTC, Information About LTC Tagged With: Actuarial Resources Corporation, Honey Leveen, Information About LTC, Long Term Care insurance, LTCi, LTCi rate hikes, rate hikes, Roger Loomis, Society of Actuaries, www.honeyleveen.com

Mechanics and Basics of LTC Rate Increases

November 10, 2014 by Honey Leveen Leave a Comment

LTCi Rate IncreasesI’m fond of this article about long-term care insurance (LTCi) rate hikes from The Society of Actuaries Long-Term Care newsletter.

Yes, I belong to the Society of Actuaries! I have for years. I’m in the LTCi section. I get a quarterly newsletter and try never to miss their annual conference. I normally can barely understand lots of their newsletter articles (which, unsurprisingly, are usually written by actuaries) because they’re so technical.

Once in a while, however, actuaries write articles that are accessible to non-professional mathematicians. “Mechanics and Basics of Long-Term Care Rate Increases” is an example of such a rare event.

Click here to read my prior blog about how and why LTCi rate hikes occur.

Any detail-oriented person interested in really understanding the inner working mechanisms of LTCi should read both my blog and this article.

Filed Under: Helpful Information About LTC, Information About LTC, Long-Term Care Awareness Month Tagged With: Honey Leveen, Long Term Care insurance, LTCi, Society of Actuaries, www.honeyleveen.com, www.soa.org

  • 1
  • 2
  • Next Page »

Contact Me

Phone: 713-988-4671
Fax: 281-829-7177

Email: honey@honeyleveen.com

Hear From My Clients

From My Blog

Tony Bennett is Not in San Francisco

Tony Bennet's story has now gone public. It is uncannily similar to Glen Campbell's. Each was … [Read More...]

Same Old Story

Just a few months ago Al was enjoying his wife, family and traveling. An acute health event occurred … [Read More...]

Testimonials

Open Quotation Mark"Honey - Whenever I need a clarification regarding our “LTC” you are “Johnny on the spot” responding in a very prompt manner, reassuring me, informing me in a concise way, patient with me as I massage the understanding in my own words. Your knowledge is current and expressed with confidence, offered in your conscientious and upbeat personality. Quotation Mark ClosedIt is a pleasure to work with you. Thank you for your expertise." ~ Nancy Damon, Houston, TX
Read more

Thanks for visiting my site! I like hearing from you!

Here’s how to reach me:

Honey Leveen, LUTCF, CLTC, LTCP
“The Queen, by Self-Proclamation, of Long-Term Care Insurance (LTCi)”
404 Royal Bonnet
Ft. Myers, FL 33908

Phone: 713-988-4671
Fax: 281-829-7177

Email: honey@honeyleveen.com

Email: honey@honeyleveen.com

©Honey Leveen, Queen of Long-Term Care Insurance 2011-2015 ~ All Rights Reserved ~ Customization of Genesis Framework by Weborization