Editor’s note: This post was originally published on 6/6/16 and has been updated for accuracy and comprehension.
The odds of people needing long-term care in their lifetime is more than 50%.Blah, blah, blah.
You've heard it before and you know what they say about statistics: 96.7% of them are made up on the spot!
Even though there's an overwhelming likelihood that most people will need long-term care at some point in their lives, most consumers are gun-shy to purchase long-term care insurance (LTCI) because they just don't think it will happen to them.
Well, they’re wrong.
This is what we refer to in the industry as denial.
It’s definitely one of the more difficult obstacles to overcome when selling long-term care insurance.
Most people who purchase long-term care insurance do so because they know somebody who has had a personal experience needing it and it touches a nerve. That’s good, but what about the rest of society?
Here's what you need to know.
Overcoming LTCI sales objections
The best way to increase your sales success with long-term care insurance is to walk your prospects through the planning process and be prepared to deal with the common objections most people have.
Here are five responses to common objections to help you land a long-term care insurance sale.
1. It’s too expensive.
Well, if they think that LTCI costs too much, wait until they see what long-term care costs – either in their own home or in a facility!
Just like any type of insurance, it’s all about the “pennies on the dollar” concept.
It's critical that your prospects understand long-term care costs in their area so they can appreciate how inexpensive long-term care insurance is.
2. I don't think I’ll need it.
Yes, but the reality is most people will need care at some point in their lives.
You can get into a statistical debate with someone (I wouldn’t), but more importantly, find out if they've ever known anyone who needed care and ask what that experience (and cost) was like. Not just them, but for their family.
OK, maybe not everyone knows someone who needed care. But then ask them if they’re prepared to spend their retirement funds and life's work on something that could be covered in large part by insurance.
3. I need to think about it.
Of course they do. So does the insurance company.
Twenty to 40% of people who apply for long-term care insurance are declined because of health reasons.
(Pro tip: You can reduce this number substantially with good field underwriting!)
You can suggest that they apply and find out if they're even eligible or insurable.
They’ll always have a 30-day free look to change their mind, so at least get the process going to see if they can qualify.
4. My premiums may increase. No, they WILL increase!
Although premiums are designed to be level, there have been and will be rate increases in the long-term care insurance industry.
That is a fact of life, and frankly, it's not unlike most other types of insurance. However, even the cumulative cost of premiums is still always a fraction of the cost of care. That’s what prospects need to know.
This is all about leverage, and prospects for LTCI need to know they can pay a little now or pay a lot more later.
5. What if I never use the insurance?
Great! If you think about it, that's the best thing that could ever happen.
We'd all like to live a long, healthy life and die peacefully without being sick or injured.
Just like with house, car, and liability insurance, it's best not to use it if you don't have to.
But no one has a crystal ball. It's better to be safe than sorry.
Battle LTCI doubts with facts
It’s been said that objections are voiced by people who actually want to buy but aren’t convinced they’ve met the right person to buy it from.
Maybe next time you meet with a prospect, introduce yourself as that person. Just be ready to convince them of it with these facts to overcome each objection.
