For the last six to seven years, the long-term care industry has faced an uphill battle in providing an affordable product for a changing market. As evidenced by the recent news that John Hancock is exiting the long-term care insurance industry, the market is not going to turn around anytime soon, especially for group insurance products. Most carriers have gotten out of the business and others have had to implement rate increases and/or reduce coverages.
Nonetheless, there is still strong demand. I recently spoke to an old friend and long-term care expert Steve Cain, principal and national sales leader at LTCI Partners, about the current state of the industry. He sees high demand for LTC protection but has difficulty getting enough or the right type of products to offer to his customers.