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48684 09/18/13
1 Genworth 2011 Financial Reality Check Study
For Producer/Broker Use Only. Not To Be Reproduced Or Shown To The Public.
Talking to your clients about long
term care needs and options
helps them have constructive
conversations with their loved ones.
These conversations may help
your clients evaluate how a loved one’s long term care needs might
impact their own financial security.
Often people don’t think about long term care until something
happens to a loved one. Yet delaying conversations about topics
like aging, health and money until a crisis hits can put your client at
a disadvantage. Being short on time when emotions are running
high may lead to spur of the moment, uninformed decisions.
By having open and honest conversations in advance, your clients
will know what matters most to those that they care about, and
they’ll be able to make decisions more confidently and comfortably
later.
Let’s Talk helps pave the way for these family discussions. In this guide you’ll learn how to use the material.
50% of people think they
will need to help care for
an adult family member or
friend in the next 5 years.
The time is right for your clients to start thinking about long term care. You can help.
Let’s Talk
Producer Guide I Long Term Care
•What clients want from you
•Why they don’t talk about long term care
•Clients’ top reasons for planning
•Why your timing is important
•How to use the tabloid with your clients
INSIDE
75% have not had
a conversation about
long term care planning
in the last 12 months.1
Become the trusted resourceLet’s Talk was developed to help clients consider and discuss long term care —
for their loved ones and for themselves — and their funding options. It also can help
you start conversations with clients and work with them to put plans in place to
help secure their financial futures.
9 out of 10 people want personal contact with their financial professional at least once per year:
•50% say that a policy review is a valuable form
of communication with their financial professional.
•42% say that email updates are valuable.3
85% of people say
that it is important that
a financial professional
gets to know them, and
understands their needs,
values and goals.4
Most people are looking
to you to help them
understand options.
By asking questions and
listening — really listening
— you can offer solutions
based on their needs and
preferences.
3 Genworth 2011 Financial Reality Check Study 4 2010 Genworth Consumer Segmentation
Dealing with conversation avoidance
Why aren’t more people having the conversations
ahead of time and how can you help them?
Ask them how they would be affected if a loved one needed
care — would they need to help with time or money? Help them get
comfortable with long term care planning by listening to them and
asking questions. Once they have faced, considered and addressed
these issues, they will be more confident raising them with the
important people in their lives.
Tip:
46% do not know how to start the conversation5
Help them start the conversation by helping them think through
long term care and the options for funding it. Present options and provide
educational material that is easy to understand. Use examples, stories and
questions to help them. Give clients the Let’s Talk consumer tabloid, point
them to a specific section or ask them to read it to help them get started.
Tip:
73% of people
would not know what
to do if they received
a call today regarding
a family member who
required immediate long
term care assistance.6
genworth.com/lets-talk 3
59% of people are uncomfortable raising the topic of long term care with their family5
5 Genworth/Age Wave, Our Family, Our Future, November 20106 Genworth 2011 Financial Reality Check Study
Confusion People say that it is difficult to understand the costs and what is paid by Medicare, Medicaid and long term care insurance
Help your clients understand their options. Clearly outline what long term
care insurance covers compared to Medicare and Medicaid. Use the annual
Genworth Cost of Care map (genworth.com/cocpro) to help them understand
the costs associated with long term care.
DenialPeople believe that they will not need long term care
Put it in the context of protecting their hard earned retirement savings or
money that they would like to leave for their family or charities. Unpredictable
health care expenses are the biggest concern for draining and running out of
money in retirement.
Share with them that at least 70% of people over 65 will need some form of long term
care.7
Mistrust They are concerned that they will not be able to rely on a long term care insurance company when they need it
Share with your clients Genworth’s history of paying claims along with industry history.
Genworth has paid $9.1 billion* in long term care claims since 1974. We insure over
1 million people and are #1 in policies in force and the number of policyholders.8
DiscomfortIt is too unpleasant to think about becoming ill and needing long term care
Ask them questions and gently remind them that avoiding the topic will not make
the potential need go away. Likewise, remind them that discussing it will not make
it happen either. In fact, it can provide them with more control of their care in the
future. Help them focus on the fact that discussing long term care and preparing for
it will mean that they can cross it off their list and move on to topics they would prefer
to think about. Remind them that putting plans in place now may give them and their
loved ones more options later.
The top reasons for not purchasing long term care insurance
Tip:
Tip:
Tip:
Tip:
For Producer/Broker Use Only. Not To Be Reproduced Or Shown To The Public.
7 Medicare & You, National Medicare Handbook. Centers for Medicare and Medicaid Services, Revised November 20128 2012 LIMRA Individual Long Term Care Report
*Represents combined data for Genworth Life Insurance Company and its affiliates as of 12/31/12
9 Genworth/Age Wave, Our Family, Our Future, November 2010 10 Genworth, Beyond Dollars, 2013
Top 3 reasons that people will plan for long term care
They do not want to be a burden on their families Help your clients put plans in place to fund care, should they
need it, so that they do not have to rely on loved ones for
support. By developing such plans they can also make their
preferences for care known.
Want to be able to afford quality care in the setting they chose Help your clients see long term care insurance as a way to have a
say in where and how they receive long term care if they need it.
To protect their spouse’s / loved one’s quality of life and future security Help your clients understand how their partner or their family
would be affected — financially, emotionally and physically if they
have to provide care for a loved one. Share with them educational
material such as Beyond Dollars, which outlines the impact on
caregivers.
People are 5x more concerned about being
a burden on their loved ones than dying.9
49% of primary caregivers reported
lost income — an average decrease of 40%
in household income.10
1
2
3
Steve’s storySteve, a general agent, helped
his client Barbara purchase a
long term care insurance policy.
He was a fairly new agent at that
point. Eight months later, Barbara
called him and said that her sister
needed to get long term care
insurance. She shared that her
sister had experienced a stroke.
Steve caringly told her that since
she had a stroke that she would
not qualify for long term care
insurance.
Barbara was upset and shared
with Steve that she should have
secured insurance for her sister
when she was healthy. At that
moment Steve stopped her and
said, “No, I should have asked you
if you knew anyone else that would
benefit from learning what you
had just learned about long term
care insurance.”
As a result, Steve always
encourages his clients to have
conversations about long term
care with loved ones. He also
shares his story with clients
so that they understand the
importance of preparing now.
genworth.com/lets-talk 5
Pages 4-5 Point clients to the things that they should know about loved ones with regards to long term care preferences and perspectives.
Pages 6-7 Share 3 key steps to becoming a better listener and some of the insights they may gain from listening differently.
Walk clients through the Let’s Talk tabloid
Direct your clients to the information that is most relevant for them. This quick view outlines what you’ll find in the Let’s Talk tabloid.
Listen & Learn
When you have these conversations,
start by asking questions. And then
listen. Really listen. This will help
get the conversation going and,
even more important, it will let you
know what your parent — or other
loved one — is thinking, which may
be very different from what you are
thinking. You might be focused on
legal documents, while your mother
is wondering who will care for her
dogs in a crisis. Listening is valuable
because you now know what matters
to her, and once you’ve listened and
addressed her concerns, she may be
more willing to listen to you.
Open your heart
and your mind.
Most likely, you will
learn something new.
1. Ask questions.Then pause. Give them time to respond. Make sure they
have finished before you begin talking. True understanding
comes from being still long enough to absorb the meaning
and intent behind what people tell you.
What are their fondest memories? Biggest regrets? What
do they want/dread as they grow older? What are their
hopes and fears and goals? What matters most to them
now? If you have a specific issue to address, learn what
they think before you begin expressing your thoughts.
2. Wait.That might mean counting silently to five, but it also might
mean letting them think on it and then continuing the
conversation several days later. These are big issues;
give them time.
3. Be open.You might not know this person or this situation as well
as you think you do. We don’t know what it is to be our
parents’ ages or to walk in their shoes. We sometimes slip
into prescribed roles within our families. Occasionally,
our notions of the role a loved one plays cloud our
vision of who they actually are, what they think and more
importantly, how they feel. Plus, with time, their needs
and wishes may have changed. Evolve with them.
Things you can do today to become a better listener.
3
genworth.com/lets-talk 7
My father talks to me or my wife,
Tracy, on the phone at least once a
week, and he has dinner at our house
most weekends. It never occurred
to me that we needed to talk about
anything because we talk so often
already. But one night my uncle was
talking about their grandfather, who
lived with them for many years, and
he was saying what a pill he was.
My father said something offhanded
about how he would never live with
his kids. Tracy and I were baffled.
We always assumed he would live
with us if it came to that.
At first, I didn’t think he meant it.
But I brought it up a few days later
and he said flat out, no, he would
never live with any of his kids. We’ve
talked about it since, and it’s been
eye-opening. We discussed where
he might live — he doesn’t like the
idea of being alone with an aide so
we’ve considered other options,
including assisted living. I’m still
hoping he’ll change his mind and
decide he could live with us, but I
don’t sense that’s going to happen.
Regardless, it’s been an interesting
process. I’ve learned a lot about him.
- Ben, age 49
“
”
Ironically, the most important
part of talking is listening.
Pages 2-3 Stress the importance of having constructive conversations about aging, health and money — especially before a long term care need arises.
Genworth helps millions of people achieve their dreams of financial independence, a comfortable retirement and protection for their loved ones.
For more information visit our Web site:genworth.com/lets-talk
The names used in some scenarios are fictitious.
© 2011 Genworth, Inc. All rights reserved.Genworth, Genworth Financial and the Genworth logo are registered service marks of Genworth Financial, Inc.
Insurance and Annuity Products: • Are not deposits. • Are not guaranteed by any bank or its affiliates. • May decrease in value. • Are not insured by the FDIC or any other federal government agency.
Ask. Talk. Listen.Repeat.
Get connected. Stay connected.
Conversations that make a difference
Let’s Talk
Back Remind clients that having these conversations with loved ones can lead to a greater understanding of each other’s preferences for long term care needs. And having this conversation with you can help them put strategies in place to help ensure their financial futures.
Pages 8-9 Offer clients specific ideas to help break the ice with loved ones.
Pages 10-11 Highlight tips that can help your clients have effective conversations with family members — whether it is a good relationship or a contentious one.
Family DynamicsSometimes families aren’t close, and even the closest ones may
have issues.
Unfortunately, old hurts and angers amongst siblings and other
family members do not miraculously disappear as your parents
age. In fact, they might, and oftentimes do, get worse. So it’s critical
that you plan ahead because you don’t want to be arguing with
your siblings when your parents most need your help.
If you’ve never gotten along as a family, or if you have long-standing
resentment toward your parents, this is going to be particularly
difficult. But it’s that much more important that you find the courage
to talk and plan. Having conversations now can mean fewer battles,
resentments and regrets later. Who knows? It might even alleviate
some of the family tension.
» The more difficult the relationship, the more business-
like you may need to be about this. Consider writing an
agenda and establishing some ground rules in advance
(for example, each person gets five minutes to speak,
or certain topics are not to be discussed). It can help to
have a formal family meeting and, if necessary, include
a mediator — a family therapist, geriatric case worker,
or financial advisor.
» Avoid hot topics. This is not the time to revisit old
issues. Focus on the topics at hand (where will he
live, how will he pay for care, etc.). If the conversation
veers into troubled water, gently steer it back on track.
» Use e-mail to sort things out. Sometimes face-to-face
isn’t the best approach. If you don’t get along, e-mail
will allow you time to think before you type, and time
to edit before you hit “send.” It will also allow people
on the receiving end to process information and gather
their thoughts, making a subsequent conversation
less reactive.
» Even though you’re all grown up, old patterns and
labels from your childhood may linger. A distant brother
might not want to hear about your talks with Mom.
A bossy older sister might continue to control the
conversation. But people do change. A sibling who
may have been too immature to contribute in the
past, may be the most capable of shouldering
responsibility as an adult.
» If one parent is already ill, your healthy parent is
probably the main caregiver. Often, it is this person
whose health fails, leaving the family stranded.
It’s vital to talk. Support the primary caregiver, and
have another option in case something happens
to her or him.
» If you know in advance that you are going to be the
primary caregiver or will be expected to offer financial
help, talk to your siblings about how this might play out.
Remember to also discuss what you expect from them.
» Talk about your feelings using “I” messages and
speaking from personal experience. Avoid “you”
sentences that might suggest blame or come across
as criticisms. This can make people defensive
and angry.
» Geography often dictates who will end up being the
main caregiver. If you live closest to your parents, but
don’t get along with them or don’t have time to give,
talk with your siblings about this now.
genworth.com/lets-talk 11
Pages 12-13 Emphasize important facts that will dispel common misconceptions and share proven “do” and “don’t” tips.
Pages 14-15 Encourage clients to consider the experience and lessons learned from real people like themselves.
Tips & Insights
Cover all the practical topics, but don’t get so focused on a checklist that you lose sight of
what this is really about. It’s not a business deal. It’s someone’s life. Be gentle. Be compassionate.
It’s OK to laugh and you may very well cry. These are not the easiest conversations, but they
will be some of the most important ones you will ever have. You’ll be glad you took the time,
and so will they.
Designed to help your talks go more smoothly
genworth.com/lets-talk 13
Even an hour spent talking today can help you avoid
years of unraveling hasty, ill-founded decisions later on.
Being prepared may mean less work, less stress, less
worry and fewer regrets later.
Talk in person.Technology has revolutionized communication, but if at all
possible, have this conversation face-to-face. If you don’t live
in the same town, carve out some time around the next family
get-together so you can talk. If your only option is the phone,
be sure to pick a time when you’re not likely to be interrupted
or cut short.
Make it about them. Remember, this is not about you, or your needs, opinions
or hopes for their future. It is about them. Keep it focused
on their lives and their wishes.
Have a sense of humor. This doesn’t have to be all business. And it doesn’t have to
be dreary. Relax. Smile. Be reassuring. And don’t be afraid
to laugh. Humor is a great ice-breaker.
Listen, really listen. We’ve said this, but it bears repeating. Ask questions, listen
and don’t assume you know what someone wants or what
is right for them.
Let the conversation go where it will. While you have a purpose, allow this conversation to meander
in other directions. Your parent or loved one might have
things to discuss that are not on your list. You might discover
things and go places that you never expected. Try to relax
and enjoy this part of the journey.
Don’t arrive bearing piles of statistics and forms. You will immediately overwhelm everyone involved. It’s great to
be informed and prepared, but don’t inundate them and don’t
be overbearing. Remember, the first step is to hear from them.
Don’t make plans and decisions ahead of time. It’s tempting to talk with other family members, figure
everything out and then present your plan as the solution.
While you have good intentions, this will make your loved
ones feel that their wishes and needs weren’t considered.
They would be right.
Don’t do this when you are tired or emotions are heated. It’s best to talk when everyone is calm and rested. If things
start to break down or tempers flare, call it a day. Let them
know it’s OK and that you can sort things out at another time.
Don’t drift into old hurts and habits. Easier said than done, but try to steer clear of old, destructive
ways of thinking. Take a deep breath. When things revert to
that old place, don’t take the bait. Instead, change topics or
try a new approach.
Don’t treat them like children. If your loved ones are older and a bit frail, confused or dependent,
you might find yourself treating them as children. Resist this
temptation. We all deserve respect, no matter what our age
or health may be.
Do Don’t
Health insurance covers virtually none of the long term care costs
of nursing homes, assisted-living facilities or in-home care — the
care many people may require late in life. Most people pay out of
pocket. Medicare wasn’t designed to adequately cover long term
care costs. And Medicaid (public health insurance for low-income
people) may require a person “spend down” assets before kicking
in. Given that a private room in a nursing home can cost nearly
$80,000 per year,1 many people who thought they had saved
adequately end up spending down their savings and limiting their
care options. It’s critical that you discuss how the cost of this care
will be covered.
Many of the best care facilities have waiting lists, and some of
them require that your loved one be able to live independently
in order to move in. Do some research and learn the options early.
Without a durable power of attorney you may have to go to court
to gain guardianship over your loved one if he or she becomes
incompetent. Guardianship is necessary so you can handle your
parent’s affairs. Going to court can be expensive, time-consuming
and stressful. Consult an attorney for advice specific to your situation.
Sometimes it is not the big health problems that ruin the golden
years, but the smaller annoyances, like the inability to pursue a
loved hobby, difficulty hearing or a fear of falling. When you talk,
try to get at these less obvious issues too, as many of them can
be resolved.
Facts to Consider
It’s strange, but true. People may dread these conversations
and often dodge them. But once the silence is broken, the door
is open—presenting an opportunity to move forward together.
Addressing tough topics frees you up to enjoy the time ahead.
And often, a new bond is forged.
Talking about worst-case scenarios
can be freeing.
While it’s tempting to think only of “more pleasant things,”
this is not a luxury we can afford. We all age and most people
end up needing help in some shape or form. These are
simple facts of life. Talking won’t make it happen sooner. But
being prepared will make those tough times bearable.
Talking about worst-case scenarios
won’t make them happen.
People value their independence over comfort.
Did you know:
» Only 8% of people would
turn to family for financial
support in retirement?2
» Only 11% say they would
move in with family to
ensure a comfortable
retirement?2
People are over five times more worried about being a burden on their family than dying.2
78% of people say they would find it helpful to talk to a financial professional about long term care planning. However, only 16% have had such a conversation.3
1 Genworth 2011 Cost of Care Survey conducted by CareScout® April 20112 Genworth/Age Wave, Our Family, Our Future, November 20103 Genworth 2011 Financial Reality Check Study
Over 90%
of people have not
discussed key long
term care topics
with their spouse,
children or parents.11
11Genworth/Age Wave, Our Family, Our Future, November 2010 genworth.com/lets-talk 7
The top 3 triggers for long term care insurance buyers12
1. Reaching a certain age
2. A financial advisor or agent recommendation
3. Knowing someone who experienced a serious illness
or life threatening event
Over 3 in 4 long term care insurance buyers were prompted
by triggers other than their advisor recommending it12
When you see this number you may think that what you do will not move people
to action. But consider this — what happens when a trigger event occurs and you
have not discussed long term care insurance with your clients? Who will they turn
to? Most commonly it will be someone who has been in recent contact with them
or someone recommended by a friend. Or will they go to someone who has
taken the time to help them have the conversations with their loved ones about
long term care, aging, health and money?
Be that person.
Timing is everything,and you are an integral part of the solution
78% of people
say that they would
find it helpful to
talk to a financial
professional about
long term care
planning, but only
16% have had that
conversation.12
Long term care
insurance buyers
act within 5 months
of a trigger event.12
Long term care insurance underwritten byGenworth Life Insurance Company, Richmond, VA
Genworth Life Insurance Company of New York, New York, NY Administrative Office: Richmond, VA
12Genworth 2011 Financial Reality Check Study
Ask. Listen. Talk. Repeat. Have the conversation with your clients
again and again. A trigger event can
happen at anytime and you want to be
there when it does. That’s the moment
when they’ll be ready to take action.
Insurance and annuity products: Are not deposits. Are not guaranteed by a bank or its affiliates.
May decrease in value. Are not insured by the FDIC or any other federal government agency.
©2013 Genworth Financial, Inc. All rights reserved.
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