“90% of people
believe advisors
should discuss Long-
Term Care needs with
clients. Only about
14% of individuals
have spoken with
their advisor about
paying for Long-Term
Care in the event
they need it ¹ .”
1 *According to Versta Research, 2017 LTC Marketing
Thought & Leadership Research, Findings from Surveys
of Advisors and Consumers
Talking strategy
I like to take time to get to know my agents and their natural selling style and their typical
client. From that we can talk strategies. For instance, most P&C agencies like to have 60% of
their business in commercial accounts and 40% in personal lines. To me, that’s a strategy. Let’s
look at the commercial accounts as your business owner LTC sales and talk to them as such. I’ll
explain to the agent that as a business owner you have the opportunity of buying LTC coverage
and deducting some or all the premiums and selecting on who the business buys for (legally
of course). It just makes good business sense to use the company check book to buy, deduct
and protect personal and business assets with traditional Long-Term Care Insurance. Now the
personal lines are a little more touchy-feely; you’ll need to modify your approach. There isn’t
the business conversation to be had, but you’d be remiss to not ask these individuals if they
have a Health Savings Account (HSA) tied to their health insurance. They could take the same
age-based deduction through their HSA.
Planting seeds
What I’m hoping to establish is that, with a shift in thought process, the long-term care
industry could be brought back from its current designation as niche. There are plenty of
opportunities if you are willing to start the conversation. Just have the concepts in place for
the different strategies that are out there today, or you could work with an LTC professional if
you don’t want to get in the weeds.
You just need to be the opportunity expert, let someone else handle the solutions for you.
You’ll be amazed to find that by just finding prospects and starting a conversation you’re
planting the seed that will lead to a tree with many fruits!
Premiums Partnerships
I’ve noticed that several of the agents I’ve spoken with about
LTCi are under the impression that high premiums are an
excuse to allow clients to remain uninsured. We shouldn’t allow
ourselves, or our clients, to fall into using this excuse. If high
premiums are a concern, it’s likely because your client needs
a policy that’s better tailored to their needs. With hybrids,
linked benefits, short-term care, long-term care, critical illness,
hospital indemnity… there are options to fit every budget and
with that in mind, every health condition as well. Let’s not overlook the power of a Partnership! Almost 3 out
of 4 people believe that Medicare or Medicaid will pay for
their Long-Term Care needs. I’d wager a much smaller number
realize how spending down for Medicaid works. Not everyone
has a yacht to lose, but they might want to protect a piece
of property that’s been in the family for generations or some
other asset that’s precious to them. Designed for Middle
America, a dollar-for-dollar LTCi partnership could protect
your client’s assets. Not everybody needs $300/day, lifetime
benefits, and 5% inflation. Nor is it what people are buying.
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