In an industry obsessed with innovation, one of our most under-leveraged opportunities lies in something as old-fashioned as human conversation.
Take long-term care planning (LTC). Despite decades of sobering statistics, consumer education, and product development, LTC Talk Avoidance Syndrome remains alive and well—not among consumers but among the very professionals meant to guide them.
It's a systemic issue. And for insurance executives and innovators, it's also a strategic opportunity.
Long-term care risk isn't a niche issue. According to the U.S. Administration for Community Living, nearly 70% of Americans over age 65 will need some form of long-term care, yet only a fraction are financially prepared. According to a LIMRA summary from late 2024, just 3% to 4% of adults over age 50 have some sort of insurance to mitigate the LTC expenses.
The need is obvious. So why aren't more clients protected?
Because far too often, the conversation never happens.
Financial professionals avoid the topic for fear of upsetting clients, getting bogged down in emotional resistance, or simply not feeling equipped. Clients avoid the topic because the implications are uncomfortable, the costs are intimidating, and the future is always "later."
This conversational gap isn't just bad for families. It's bad for business. Every missed LTC planning conversation is a missed opportunity to build trust, create loyalty, and provide meaningful risk management.
While many in our industry focus on performance, pricing, and product features, the most powerful differentiator may be something more human: emotional security.
Emotional security is what clients feel when they know they're protected, not just financially but personally. It's the trust that's built when a financial professional helps them face tough realities—and guides them through.
In today's commoditized landscape, emotional security has become the key to unlocking client loyalty, intergenerational planning continuity, and resilience in advisor-client relationships. It's what drives referrals, repeat business, and retention during volatile markets.
Yet most financial professionals aren't trained to offer it.
This is where insurance executives have an urgent and valuable role to play.
When we talk about innovation, we often default to digital tools, AI, or frictionless platforms. These are essential, of course. But we can't innovate our way around human fear, aging parents, or adult children caught off guard by caregiving.
We need to rethink our product development priorities.
Innovation must also mean designing products that make it easier for professionals to have difficult conversations, and easier for clients to say "yes" to planning. That's not just about simplicity. It's about psychological accessibility. It's about creating solutions that align with how people actually think, feel, and make decisions.
This kind of emotionally intelligent product design bridges the gap between protection and peace of mind. It's not just solving a financial problem—it's solving a behavioral one.
If emotional security is the goal, then LTC planning is its crucible. It's where we as an industry prove whether we're willing to lead people through life's most difficult transitions or let them face the issues alone.
This isn't just a distribution problem. It's a leadership opportunity.
- Are we equipping financial professionals with the tools and training to handle emotional resistance?
- Are we creating incentives that reward meaningful planning over quick wins?
- Are our products and messaging designed with emotional behavior in mind—or just actuarial logic?
LTC Talk Avoidance Syndrome doesn't just cost consumers. It costs us trust. It limits our growth. And it undermines the promise that our industry makes: to help people live with security, dignity, and confidence—no matter what life throws at them.
For those leading the insurance and annuity space, this is a moment to ask: How do we define innovation?
Yes, it's about technology. Yes, it's about efficiency. But it's also about empathy.
The future belongs to firms that recognize emotional fluency as a strategic asset, and emotional security as a deliverable, not just a byproduct.
This means:
- Creating solutions that address behavioral obstacles, not just financial gaps.
- Supporting financial professionals in building trust through emotionally intelligent planning.
- Embracing products that offer clients flexibility, security, and peace of mind in one package.
The LTC crisis is growing. The need for solutions is clear. What's missing isn't capability—it's courage.
Let's lead with both.
