LTC solutions

Health crises can strike even young adults and those in their prime,
but the risk of long-term illness or recovery rises sharply with age
60% of Americans over the age of 65 will require long-term care in their lifetime
1 out of 10 will require care for 5 years or longer
.
The average time required for care is two and a half years.
In 7 out of 10 couples aged 65 or older, at least one spouse will enter a nursing home.
Women are one and a half times more likely than men to enter a nursing home after age 65
1 in 5 Americans over age 50 will need long-term care services in the next 12 months
The average woman can spend 17 caring for a child and 18 years caring for a parent
More than 7 in 10 unpaid caregivers are women
The average annual cost for a nursing home is $56,000 (or $153 per day)
Three home health visits per week can cost $12,000 per year
33% of stroke victims in the U.S. are under age 65
The cost of long-term care services, such as personal care and assisted living,
could quadruple by 2030!

Overcoming Objections

Objection: Cost - the premium is more than they imagined.

Cost Strategy 1: Go over the dollar value of the benefits that the prospect can expect in the future.
Rather than speaking of a $100-a-day benefit, talk about a $300-a-day benefit, when the care is more needed. Annualize a figure, like $100,000 a year need.

Cost Strategy 2: Use the word "invest" rather than "spend."
Determine what the client is willing to spend without changing their lifestyle. This gives you a figure upon which to base your proposal.

Cost Strategy 3: First show only one LTC plan.
Then ask if they'd prefer to see a more expensive plan with more coverage, or a less expensive plan with less coverage.

Objection: "My children will take care of me"

Children Strategy 1: Realize that whenever a client says "my kids will care for me," they do not see themselves as needing a lot of care or as physically incapacitate."
Usually when the children intend to help, it's to run errands or help to clean up. Neither parent nor child sees the reality of requiring daily help to get out bed, bath or dress. You need to eliminate these misconceptions.

Children Strategy 2: Ask questions like: "Have you discussed with your kids how long-term services will be provided and paid for?" The intent is to see whether the children's help is just wishful thinking or a reality.

Children Strategy 3: Ask: "Will one of your children be in a financial position to give up job his or her job if you found yourself needing care, or would that be a financial hardship for the family?
End the discussion with, "Since your children want to take care of you and help with the care giving process, you have a good reason to buy LTC protection. Your children can participate without creating any financial or physical burden."

Children Strategy 4: To the parent: "Long Term Care insurance will not replace the family support,
but it will build upon it and add to it."

Children Strategy 5: To the children: "I know you want to help take care of your parents.
Let me show you a product that will allow you to to do it in a way that's better, and for a longer period of time."

Reasons People Buy Long Term Care Insurance

To avoid spending the savings it took a lifetime to create
To avoid becoming a burden on one's spouse
To preserve assets and to leave an estate to one's heirs
To avoid depending on others for care
To maintain access to high quality care and dignity
To allow a choice of home care, assisted living, and/or a nursing him
To avoid leaving one's family a legacy of debts
To preserve independence and to avoid going on welfare

Tax Advantages

As of 2003, self-employed individuals, LLC's, S-Corporations and Partnerships
may deduct a portion of premiums paid for Qualified Long Term Insurance.
C Corporations may deduct 100%.

Reasons People Need Long Term Care

Accidents
Advancing Age
Heart Attack
Stroke
Parkinson's Disease
Cancer
Multiple Sclerosis
Disabling Conditions

Power Phrases for LTC

"The cost of LTC insurance is usually much lower than not having it"

"Purchase LTC Insurance when you don't need it, because once you do need it, it's too late"

"The main purpose of LTC Insurance is to provide options and funds so you can AVOID a nursing home"

"LTC Insurance gives you a chance to plan for the worst and hope for the best"

"At some point, everyone becomes uninsurable. When that happens, LTC won't be an option"

"Old age isn't the only reason you might need long-term care; 40 percent are working-age adults who need care because of disabling accidents or illness."

"Should you go to a nursing home, would you rather receive a card or a check?"

"If you wait to apply for LTC insurance until after your next birthday, you'll pay about 10% more each year"

Unique Ideas for Increasing LTCI Sales

Referrals:

Existing clients will make referrals when they have something substantial to gain, like a discount or a free year of premium. When selling a LTC policy to an individual who is part of a company, suggest that generating interest from others at the firm might qualify them for a 15 percent group discount. With five participants, an executive carve-out plan could save your client about $1200 this year for the next nine.

Prospecting:

Local cable TV stations provide public access programming for free. Content must be non-commercial. LTC issues are certainly noteworthy. Most stations offer the use of their staff and equipment to create the program. One can send copies of the show to other stations, resulting in continuous free media exposure.

Helping clients pay for LTC Premiums

Ask clients who are former business owners if they have any old, unneeded life insurance policies that were purchased during the life of the business. If a policy like this has accumulated cash value, it can be cashed in and put into an annuity. The interest payout from the annuity can be used to pay LTCI premiums.

Ways to help non-wealthy Baby Boomers pay for LTC, by increasing affordability

Urge people to buy policies in their 40's or early 50's
Combine a health savings account with a limited-pay LTC policy
Instead of lifetime benefits, offer a plan that pays for 2 to 4 years
Extend the waiting period to qualify for benefits
In lieu of a policy with a compound cost-of-living adjustment feature, offer one with a higher daily benefit
Forego survivorship and restoration of benefits features

Women's Market

Facts: Women face a greater risk:

They outlive men by seven years and are twice as likely to need a nursing home after age 65

75% of those over 85 are women

About 75% of nursing home residents and 65% of home care residents are women

More than 7 in 10 unpaid caretakers are women

The average woman spends 17 years caring for a child and 18 years for a parent

Strategies that work

Women respond best to a low-pressure, informative sales approach.

Key in on her specific needs so she isn't overwhelmed by all the information about LTCI.

Use terminology that is easily understood.

Women like to know in advance about the expense. Stress that LTCI helps to eliminate high, sometimes unexpected,
out-of-the-pocket costs.

Explain the limitations of Medicaid, Medicare and traditional health plans,
as they relate to the coverage of long term care expenses.

Women like their independence and do not want to be a burden to their children.
Point out the personal characteristics of long term care planning.

Women prefer choices. Show how LTC insurance offers a range of care options
that usually cannot be received from Medicaid or personal resources.

Discuss long term care insurance during an annual review.
Make it part of a complete financial plan.

Remember that among married couples, 82% purchase a policy for each spouse.

Encourage the purchase of LTCI at a younger age for lower premiums.

Invite her to an educational seminar on LTC.

Remember that for younger women,
you might be competing with savings priorities like college funds and retirement.