Lincoln seeks growth in Life/LTC combo products.

Lincoln National Corp. is among companies in the U.S. life insurance industry hoping that people nearing retirement will see the value of buying a life insurance policy that offers a long-term care insurance benefit, a type of combo product that's been around for 20 years but is just starting to catch on.

Many potential buyers who had felt confident about being able to pay for future long-term care costs out-of-pocket "are probably not quite as confident today, given the state of the markets," said John Connelly, national spokesman for MoneyGuard Reserve at Lincoln Financial Distributors, a sales division of Lincoln National.

He said his stockbroker told him the net worth of his typical client has dropped 30% as a result of stock market declines. Planning for long-term care is more critical than ever because the risks and costs stayed the same, Connelly said, noting the average cost of a private nursing home room nationwide is just less than $75,000 a year. About 70% of people age 65 or older will need some type of long-term care, according to Lincoln.

Lincoln's sales force is talking to clients who've decided not to buy a traditional, long-term care policy, said Connelly, asking them to "think about the first asset in your portfolio that you would liquidate if you had a need for long-term care"