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Selling To a Growing Market - Angie September

Emotionally, we avoid thinking about it. Logically, we know it’s a possibility.

How is one supposed to balance a matter of the heart with a matter of the mind? As an agent interested in selling long-term care insurance, that’s something you need to consider. Statistically speaking, baby boomers are forecast to need long-term care at a greater rate than their predecessors; longer life expectancies and improvements in medical care have made sure of that. One federal report estimated that 13 million Americans needed long-term care in 2000, but 27 million will in 2050. With a trend like that, you’d expect to see a growing long-term care market.


Angie Hughes 

LTCi Marketing Manager

What if I told you that we’re having more and more conversations with folks younger than 50 years of age about long-term care planning every day? Do you know why? They’re seeing this play out with their grandparents and parents… and they want a plan. They realize that if they don’t start planning now, they could see what they’re working towards destroyed, both financially and emotionally, later.

The days of selling an unlimited benefit with 5% compounding inflation are long gone. Not that we don’t have that option, because we do.  But consumers do not want to write that premium check. What we are experiencing are smaller benefit periods, 3% inflation and a modest daily/monthly benefit. The good news the approach works in the Midwest, but more importantly, it is about talking to the client.

I had a conversation with a gal the other day

She is 48 years young and married with 2 children at home. She watched as her grandma and dad needed long-term care and simply wanted a plan to set her mind at ease. I explained she should buy as much coverage as they can afford now with the knowledge that, as the kids come off ‘payroll’, they can explore

more coverage options in the future. Of course, it’s important to understand the role of health when buying coverage, you’ll want a good understanding of their realistic expectations given their history.

The gal I talked to is buying is a $120/day, 2-year benefit period with shared care and 3% inflation. The monthly premium was around $207.00. I never miss the opportunity to ask if they are business owners, and both she and her beneficiary are, so I explain to them the opportunity to take the age-based tax deduction. That ended up covering 100% of their premiums as a business expense but, of course, seek the advice of your accountant.

Selling long-term care insurance is fun! I felt good, the agent was pleased, and the client was super excited because she felt that her family was in a better place and had a plan for an extended care event. What was even more impressive is this was the agent’s first experience with me; she is new to our agency. She trusted me to talk with her client and explain long-term care insurance.

Have I told you I will be happy to join on calls with you and your clients to have the conversation around long-term care planning? All you do is determine which of your clients would benefit from the same type of conversation. Let’s match up calendars and make a date! I just ask that you give me the story of the client prior to the conversation. What I think really resonates with consumers is one size does not fit all. I ask them about their parents and grandparents health and how that plays into their plan.

Take my family for example: my grandmother was in a nursing home for a short period of time with Stage IV colon cancer, my mother never needed care but struggled at home with many health conditions, congestive heart failure, diabetes, 2 strokes-just to name the big things. My family hasn’t required the long-extended care, so I didn’t buy the unlimited policy as I don’t feel my genetics will lend me to need care for an extended time. But this resonates. Why? Because people like talking about themselves and their family, so let them! You’d be amazed at what wonderful, loving stories and sometimes nightmares you will hear. Both types of stories are exactly what you need to hear and understand that is what will drive them to want a plan for themselves.

Long-Term Care Awareness Month is November! Have we talked and set your marketing plan to bring awareness to your clients that you offer that product? If not, we need to visit real soon.

Tomorrow is not a day of the week, let’s make plans today!