Making your way in the life insurance business can be difficult.
Did you know that only about 1% of insurance producers make it past a year on their own?
Making it that far doesn’t mean the challenges magically drop off, either.
Even producers who’ve been in the business for a long time need some help sustaining growth along the way.
The support a General Agency offers you is invaluable.
With their help, you can expand the services you offer.
Here are some of the ins and outs of long-term care insurance you need to know to increase sales and continue growing your business.
The basics of long-term care insurance
Long-term care insurance is different from health insurance.
It’s designed to cover services and support for ongoing issues in a variety of settings, like your home, a facility or even an adult daycare setting.
The policy will pay a stated benefit to your client once policy triggers are met – for services that assist them with the activities of their normal life, such as bathing, dressing or eating.
There are a variety of options that allow the policyholder to get the support they need when they need it.
Overcoming common sales objections
The best way to increase your revenue with long-term care insurance is to walk your prospect through the most common misconceptions and help them understand the real benefits.
Here are the objections you should be prepared to counter.
1. It costs too much
Your prospects may think they can’t afford long-term care insurance – until you help them realize what they would have to pay on their own.
It’s vital that your prospective clients understand the costs for long-term care in their area so they have an accurate picture of how much they can save when they choose to secure coverage.
2. It’s not necessary
The truth is that most people will need some form of long-term care in their lifetime.
One way to open a prospect’s eyes to this reality is to ask if they’ve ever known anyone who needed care and what that experience was like for them – and their family.
If they say they don’t know anyone who has needed long-term care, ask them if they’re comfortable with the idea of spending their retirement savings and life’s work on something that could have been significantly covered by an insurance policy.
3. It’s something to think about
The insurance company has to do some thinking, too.
Be upfront about the fact that 20-40% of people who apply for long-term care coverage are denied due to their health circumstances.
Encourage your prospect to apply to find out if they’re insurable.
The underwriting period during which they can change their mind will give them a chance to start the process without being locked-in.
4. Premiums will go up
Rate increases are going to happen with long-term care insurance.
The crucial element for your prospects to know is that even the cumulative cost of the premium will only be a fraction of the cost of care.
Highlight the fact that paying a little now will prevent them from paying a lot more down the road.
5. The long-term care insurance won’t get used
That’s a good thing, right?
The ideal is to live a long life and die without ever having been touched by illness or injury.
Of course, things would be much easier if you could offer your prospect a glimpse into their future.
But, since you can’t, your job is to help them understand long-term care insurance and the importance of having coverage in case they ever need it.
The rider option
One way to help you sell more long-term care insurance is to offer it as a rider on a life insurance policy.
It can be a more practical and efficient option that not many carriers offer, however, at Leisure Werden & Terry, we represent several carriers that do.
This method of killing two birds with one stone is an effective solution for your prospects.
Prospects of a certain age
You’ve learned how to overcome the most common objections to long-term care insurance.
Now, let’s focus on prospects who are in their 40s, 50s and 60s.
Here are some tips for reaching those in this age range.
A.Point out their age advantage
Make your prospects understand that the younger and healthier they are when they buy long-term care insurance, the less they’ll have to pay and the better off they’ll be.
For example, if they buy a policy at age 40, they’ll pay around $80 a month for a couple.
On the other hand, if they wait until they’re 65, it will cost them about $125 per month.
That’s a savings that adds up quickly.
There’s another way your prospect will save, too.
Typically, younger = healthier.
Good health can save them as much as 42% if they purchase in their 40s, with only 11% being denied for ill health.
If they wait until they’re in their 60s, the number drops to a 21% savings and a denial rate around 24% due to poor health.
B. Address the risk
Numbers don’t lie.
Leverage the idea of purchasing long-term care insurance as a way for your prospects to safeguard their financial future.
Help them understand that without this type of coverage, their retirement assets are at risk, their retirement income could be in danger and their overall financial security is at stake.
Take a look at these statistics:
- The current average cost for a year of care is about $76,000.
- 30 years from now, one year of care will cost approximately $253,000.
- The average length of a long-term claim is 3 years.
Ask your prospects if they’re prepared to pay these kinds of costs out-of-pocket.
How quickly would their savings dwindle?
Highlighting the way long-term care can protect your prospective client’s financial future and their quality of life is an effective sales method.
C. Put a spotlight on options
It’s important that your prospects know they have a choice – no matter what age they are.
These are the areas in which prospective policyholders have some flexibility.
The most expensive policy may offer a prospect the most comprehensive care, but there are plans available that offer ample coverage and still fit into their budget.
The bottom line is that some protection is better than no protection at all.
Help your prospects understand that with a partner like you walking alongside them, making informed choices will be easier than they imagined.
Sell long-term care insurance with ease
By overcoming common objections and targeting prospects at a harder-to-reach age range will allow you to boost your long-term care insurance revenue.
Position yourself as partnering with your prospects and offer the solutions they need.
Which objection to long-term care insurance do hear most frequently?