A Basic Guide to Selling Long-Term Care Insurance



Whether you are starting up a new insurance agency or work for one that has been around for a while, it’s a good idea to look into ways to expand your business from time to time. One way to do this is to make selling lucrative long term care insurance (LTCI) policies part of your insurance lead generation strategy.

According to the U.S. Census Bureau in 2010, 40 million people age 65 and over lived in the United States, accounting for 13 percent of the total population. By 2030, the number of Americans over 65 is projected to account for 20 percent of the total population.

One of the biggest concerns of those who will make up the 20 percent in 2030, is how they are going to pay for long term care when their time comes. People who make up this demographic are currently watching their parents and grandparents struggle with the high cost of health care, and see their estate value dwindle as a result.

Because of the rising cost of health care, these days many estate planners are making LTC insurance part of their overall plans. A long-term care insurance policy provides money to help cover the costs of nursing home care, an assisted living facility or at-home assistance for those no longer able to take care for themselves. Having a policy makes it possible for the holder to preserve the equity in his or her estate, rather than having to spend that money on care.

Now that you understand the value of Long-Term Care policies, here are some tips for converting the prospects who come in through insurance lead generation methods into paying customers.

  1. Be careful how you open the Long-Term Care conversation.

When you begin the long-term care discussion, be aware that most people will hear the words “nursing home.” This often shuts people down because they don’t want to even think about the concept.
Start the discussion about long term care policies by pointing out they cover claims for home health care. This approach changes how the client views the conversation into something positive - being able to remain in their home.

  1. Focus on helping to meet the client or prospect’s needs, goals and financial picture.

Be sure to point out that Long Term Care policies can be sold as stand-alone products, as part of an annuity or as part of a life insurance policy. For clients looking to leave as much money as possible to beneficiaries, the latter may be the most suitable plan. The entire pool is available to be paid as monthly LTCI benefits, and whatever is left in the pool is paid as a death benefit.

  1. Don’t underestimate which clients would be a good fit for LTCI coverage.

One common mistake is to assume a client is too young, too unhealthy, or not affluent enough to purchase LTCI protection. Clients under age 40 may be willing to add a rider on the life insurance they are already purchasing. These riders are generally inexpensive at younger ages and add value to the policy.

  1. Use storytelling to help with client objections.

And finally, a good tactic for selling this type of policy is with storytelling. By presenting a scenario of what can happen if the person does not have an LTC policy, you’re sure to get them thinking.

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