According to a new study by the Center for Retirement Research at Boston College, more than a third of people who have bought long-term care insurance (LTCI) will let their policies lapse at some point, forfeiting all benefits.

Read: Majority of workers say retirement savings depends on cost of health insurance

This study is a must-read for advisors who are active in the LTCI market. While it is comprehensive in scope, one issue it does not address is whether LTCI policyholders have the benefit of professional advice in their lapse-related decisions. Reading it, you will see that:

• Decisions to lapse LTCI often are made for emotional reasons or under pressure – i.e., feelings that premiums are not affordable or sustainable.

• For some people, lapsing LTCI may be a viable option that increases financial security and ability to bequeath assets after death.

• Lapses are common among people who are cognitively impaired, "perhaps reflecting poor financial decision-making."

In some cases, LTCI was initially purchased 10-20 ago, and the initial coverage decision doesn't reflect current realities of the following:

• rising premium costs

• the policyholder's financial situation and health care prospects

• advancements in long-term care facilities

For millions of seniors, independent and assisted living facilities have emerged as more attractive options to nursing homes. In these facilities, it's often possible to augment services by hiring home health care workers to perform activities of daily living, on-site.