Warn clients early of long-term care costs: Jeff Beligotti

What do you want to know

  • Beligotti sees inflation increasing the cost of care.
  • He thinks paid advisors can play an important role in educating clients about LTC risk.
  • He doubts federal or state efforts will eliminate the need for private arrangements in the near future.

Jeff Beligotti works for a healthy insurer that can still offer your clients stand-alone long-term care insurance.

Beligotti is head of long-term care solutions at New York Life, a New York-based, policyholder-owned life insurer.

The company ended 2021 with $760 billion in assets under management and the highest insurer financial strength ratings currently awarded by AM Best, Fitch, Moody’s and S&P Global Ratings.

The company offers long-term care benefits combined with life insurance policies as well as stand-alone LTCH products and traditional life insurance and annuity products.

The company has provided AARP’s long-term care planning options since 2015.

New York Life managed to stay in the LTCH market during a period when poor investment portfolio returns, weak sales, and problems predicting policyholder behavior drove out many competitors.

We asked Beligotti how he sees the LTC insurance and long-term care planning industries now, after all these years of upheaval.

1. How do you think the current interest rate environment might affect the LTCI business blocks?

Although interest rates are still historically low, they have risen recently, which may ease some pressure on in-force LDCI blocks.

At the same time as interest rates are rising, we are also seeing an increase in inflation, which has led to increased costs for daily necessities, as well as for healthcare.

The good news is that New York Life has long been there when we need it most.

2. How would you describe the apparent risk level of your LTCI policyholders before the onset of the COVID-19 pandemic? How has COVID-19 affected these LTCI policyholders?

While COVID-19 has certainly impacted all of us in the industry, and personally, New York Life’s strategy ensures that no element of the business is disproportionately impacted.

More important is the impact of COVID-19 on our policyholders.

We have seen a greater preference for receiving care outside of a traditional long-term care facility and have been able to address these preferences, while educating clients about the flexible options available for how and where to receive care. care in the client’s long-term care setting. Strategies.

3. Is long-term care planning separate from stand-alone LTCI sales? If so, could you tell us how the LTC planning market is doing.

At New York Life, our finance professionals are at the center of our client relationships and provide holistic advice and guidance to a wide range of clients, all with unique financial goals.

This approach is based on a suite of solutions focused on protection and accumulation designed to meet financial needs at all stages of life.

With that in mind, we don’t view long-term care insurance sales as separate from long-term care planning conversations.

Our finance professionals are equipped to meet insurance needs through a range of solutions, including stand-alone LTCI, as well as connect clients to resources through our online long-term care hub.

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