Long-Term Care and Underserved Communities: Messages That Culturally Connect

By Carroll Golden, CLU, ChFC, LACP, CLTC, CASL, FLMI

Baby Boomers are living longer than previous generations. However, this longevity doesn’t always translate to people of color in underserved markets who lack access to high-level healthcare, according to Chris Gandy, NAIFA Trustee and Founder of the Midwest Legacy Group (loyal member since 2003). The lack of access is particularly significant for those needing long term care (LTC) services. “It becomes a new pandemic!” Gandy said.

The failure to prepare for LTC needs and a tendency to rely on family are reasons family wealth is continually diminished in many households. Using assets for LTC, as opposed to investments and wealth accumulation, is a cycle that needs to be broken, Gandy said. Education is important. Gandy points to his own experience. He learned about LTC planning options only after he became an advisor.

When Gandy asks his clients about LTC, they generally respond with, “You mean nursing home insurance?” They also relate LTC to dying. He reframes the discussion away from death and care to emphasize “access to choices.” It follows a logical process. He “educates” his clients, increases their “knowledge” so that they become familiar with the “choices” that will “free” them from the cycle of using family wealth to cover LTC.

By talking about choices and freedom, Gandy addresses his client’s emotional concerns instead of offering a sales pitch. For generations, the word “freedom” has resonated with African Americans. In that context, Gandy explains LTC insurance this way: “Use it, use it or use it. By shifting some of your assets into LTC insurance, you can use it for living expenses, use it for LTC or use it for a family legacy. In leveraging a portion of an asset, you will absolutely use it for one of those three scenarios.”

The LTC market is evolving. Traditional LTC (TLTC) is available along with hybrid LTC products. But TLTC remains marred by previously underpriced products and premium rate increases. Gandy suggests that advisors take objections as “bite-size pieces.” He may ask a client: “If you go to Florida, do you pack when you get there and pay the going price for what you need, or do you pack first?” This helps the client understand why waiting to prepare for LTC doesn’t work.

Gandy explains how LTC planning helps families leave financial legacies. A key phrase to use is “generational wealth.” Since many parents don’t understand it, we must teach this generation about wealth preservation. Gandy “pressure tests” his client’s current financial situation. The conversation starts with “parent proofing” their plan. Who is the most financially sound person in your family? If your parents need help, what will be the effect on your plan? These simple, logical connections to real life situations show the importance of a financially sound LTC plan.

LTC planning is crucial for providing financial security to underserved communities, and it has long been neglected or overlooked. It’s a problem that can be addressed, but advisors must use the right messaging to make meaningful connections and progress.