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The Situation

Your client understands the need for Long-Term Care Insurance (LTCi), but feels the premium is too costly – they want the policy, but can’t afford the premium.

The Sales Solution

With all the options available on LTCi products, you can help your client “dial down” the premium to fit their budget.  After all, some Long-Term Care Insurance is better than none.

You can dial down premium in a number of ways:

• Adjust the inflation protection option.
• Reduce the monthly benefit amount.
• Reduce the maximum monthly benefit amount for assisted living.
• Adjust the benefit period.
• Adjust the elimination period.

Here’s how it works:

• If you’re making a partnership qualified sale, the inflation protection option must meet state requirements based on the client’s age at application.  In this case, you may not be able to adjust the inflation protection option and may have to adjust the monthly benefit amount instead in order to reduce the premium.
• If inflation protection is not a factor, look at using an inflation protection option other than 5% lifetime.  You might consider the 5% 20-year option, which provides a compounding benefit increase for the first 20 years of the policy.  You also could use a 3% or 4% lifetime option or the 5% simple option.
• If your client feels they may not need the maximum monthly benefit for assisted living facility, they have the option to reduce that benefit by as much as 50%.
• You also can help the client select from seven different benefit periods and six different elimination periods to help reduce the cost of the policy.

Your Competitive Advantage

Having the ability to show your client various benefit combinations allows you to tailor a policy that meets their needs while staying within their budget.  And that gives you a competitive advantage in the LTCi marketplace.

For more information contact your LTC Specialist today.