Long-term care insurance (LTCI) can be a complex sale. Not only is it an emotional subject for clients who would rather avoid discussing the possibility of becoming disabled and requiring care, but every client will have their own wants, needs, and budget. Following these tips will help you guide the conversation and find the best solution for each client’s concerns while giving them more control over their decision.
Read More: Who Is a Good Candidate for Long-Term Care Insurance?
1. Keep it simple.
Years ago, most LTCI sales were completed with the agent sitting across from the client at the client’s kitchen table. Nowadays, many LTCI sales are completed remotely. But that doesn’t mean you need to have an elaborate PowerPoint presentation to review with clients. In fact, many of our successful LTCI agents do not follow a presentation at all. In the end, the best course of action is to keep it simple. Here’s a simple approach to set the stage:
Thank you for taking the time to meet with me today to discuss extended care. Extended care is the assistance you would need to maintain independence and safety while managing daily activities, which may become necessary due to health conditions, frailty, or cognitive decline. This care can be provided by either informal or professional caregivers, and its costs can significantly impact a retirement income plan. Having a written strategy in place will help guide you and your family if care becomes necessary. Once the plan is established, it’s important to decide how to fund it, and long-term care insurance may be one of the most cost-effective options. I’m glad we have this opportunity to explore your goals and preferences so we can start creating a plan to protect you, your loved ones, and your assets.
2. Listen more. Talk less.
While that might sound easy, this is often a skill you need to develop and hone. Here are a few questions to help start the conversation:
- Do you have experience as a caregiver to someone you love? Let your client answer and listen to their response. More than half of LTCI policyholders purchased LTCI because they were caregivers themselves and didn’t want to repeat the same pattern with their families.
- Your choices for paying for care are self-insuring, having your family pay, qualifying for Medicaid (not Medicare), or purchasing long-term care insurance. How would you pay for care if you needed it?
- Have you earmarked accounts that you can liquidate if needed? Would there be a tax consequence?
- Would an extra expenditure of $6,000-$10,000 affect your or your spouse’s lifestyle?
Remember to listen to your client’s responses, and they will point you in the direction of their situation and mindset.
3. Avoid sticker shock.
The cost of care in a skilled nursing home is staggering. However, if you ask any of your clients where they want to receive care, their response will never be in a nursing home. Most would prefer to receive care at home. So, why would you try to sell clients policies that cover 100% of skilled nursing home costs? It’s unaffordable and unrealistic. Instead, look at the cost of care for home health care and consider running a quote based on 70% of those costs. For instance, if home health care costs $6,500/month on average in their state, consider a quote for benefits of $4,500/month. Ask if they are comfortable with the premium or if they budgeted for a different premium amount. Depending on their age, you may also want to include an inflation rider so their benefits will increase as they age. Your client may decide that they can afford more coverage but let them make that decision.
Since Traditional LTCI is the most cost-effective solution to funding for long-term care, this is where we recommend that you start with your clients. If your client prefers a guaranteed premium or a death benefit, then you can pivot to an asset-based LTCI product. However, those additional features will mean higher premiums for your client’s policy.
Read More: How Affordable is Long-Term Care Insurance?
4. Share your screen and give your client control.
When running quotes for your client, you may want to consider giving them control of your screen. They can change benefit amounts, benefit periods, elimination periods, and other policy elements to see how the pricing is structured. This gives them more control over their budget and final decision for benefits.
5. Define clear next steps.
Before ending your meeting with your client, you should define what next steps should be taken. If the premium is within their budget, the next stage would involve discussing their health and moving forward with an enrollment application. You may want to have your client complete an intake form regarding their health. Each carrier has its own form, and The Krause Agency has one as well. These forms do not cover all medical conditions, but they will give you a basic idea of insurability.
Set another appointment with your client before ending the meeting and send an email with clear instructions for the next meeting. If you are taking an application, your client should have a list of medications, dosages, how long they have taken them, and who the prescriber is. They will also need a list of doctors visited in the last five years along with addresses and phone numbers.
If you are looking for more information on selling long-term care insurance, please reach out to our team!
