Whether it’s Long-Term Care Awareness month or you’ve simply committed to selling this product year-round, you have or will run into these popular excuses:
“It’s confusing.”
“I don’t need it.”
“I’m uncomfortable talking about it.”
We’d like to share a few strategies—one for every response listed above.
The Confused Client These clients don’t understand what long-term care insurance covers, how much it costs, or how it compares to Medicare, retirement, life insurance, etc.
There’s an easy explanation.
Life insurance protects the client’s family in the case of death. They pay a monthly premium and at the time of his or her death, the insurance carrier pays the client’s beneficiaries. Healthcare, such as Medicare, covers things like hospital visits, impatient and outpatient procedures, and prescription drugs.
But while life insurance protects in the event of death and Medicare is designed for short-term coverage, LTC is strictly designed to provide funding for skilled nursing or long-term in-home care.
You already knew that. So what’s the point?
The point is to be as clear as the information above. And be honest. Also, don’t just talk about the differences in each kind of insurance, show them the differences too. Break it down as simple as possible at the first discussion. Do some fact finding and figure out your client’s needs.
Then you can talk about how much coverage they need and how much it will cost. But don’t overwhelm them on the initial visit.
The Impervious Client Whether it’s because they are invincible, there’s a lack of trust, or they merely do not purchase things they don’t understand, these clients don’t believe they need LTC.
The scary truth is that around 70% of Americans will end up needing long-term care. Do they really want to chance being the unique one out of four or five who don’t need it?
Consider this: If they do end up needing LTC and have no insurance in place, they’ll end up using their lifelong savings or hard-earned retirement money. The nest egg will take a huge hit. And what if they have a spouse who depends on those funds for retirement? Or children who originally were to receive a legacy? It’s worse to be unprepared and need it than to be prepared and not use it.
If it’s due to a lack of trust, well, you may want to re-consider your methods. Ask yourself why your client would not trust you. We suggest always using the open and honest route and changing the approach from selling a product to casually conversing about a service. Should the distrust be aimed toward insurance carriers, then statistics on paid-out claims can easily be acquired.
Finally, refer to the above point for those clients who won’t buy without understanding first.
The Reluctant Client When you mention the idea of getting old, becoming sick, needing help, and/or dying, these clients shudder at the thought. They’re not buying because they don’t even want to have the discussion.
With these individuals, laying dozens of statistics on them won’t work. They’re not listening. And you don’t want to scare them into buying. Rather, you want to ease into the conversation.
Start slow.
Let them know that preparing for it does not mean it will automatically happen. On the other hand, being unprepared doesn’t stop it from happening. Advise them to call you immediately when they feel up for having a preliminary discussion. Talk simple options and explain what the service is before getting into comparisons and expenses.
Emphasize that putting a plan together now allows for more options and increased funds down the road. They’ll also have peace of mind right now.
Then—again—refer to the first point above. The more they understand, the more comfortable they should feel. Be there for them as their proven and trusted advisor, and it will be that much easier for them…and you.
For all three of these clients, the idea of paying into something they may not ever need doesn’t sound like a good idea. On the other hand, having no coverage at all and having to take on this costly type of care is worse. Still, there are combo products out there that combine life insurance and long-term care or LTC and annuities that allow consumers to acquire coverage, but use the funds elsewhere should they never require long-term care.
Need more information about long-term care insurance, combo products or strategies for selling? Contact us today at (800) 823-4852 or e-mail your Brokerage Director.