Menu

CPS Midwest Life LTC

Shutterstock_2549343777 (1)

Open the Door to Small Business Sales

Selling Long-Term Care Insurance to small business owners is not like the emotional roller coaster sale it is when selling to individuals. Business owners tend to look at this as a logical discussion of how you can help with their business finances.
 
Many are always looking for a way to save on taxes so a great way to open the door to an LTC sale would be, “If I could show you something that could help your business reduce its tax burden, would you be interested?”

All businesses can deduct LTC Insurance premiums paid using business dollars.

Depending on the tax structure of the business, the owner can either deduct the actual premium or eligible premium.  How?
 
Owners of C corporations can deduct the actual premium paid on a LTC Insurance policy for the owner / employee, spouse, dependents and a designated class of employees.
 
Self employed business owners such as sole proprietors, partnerships or LLCs can deduct the eligible premium paid for the owner, spouse and dependents. The eligible premium is established annually based on the medical care components of the Consumer Price Index.
 
This opportunity allows you to approach any type of small business because you are able to offer a money saving solution. Be sure to approach small business owners with a plan that provides essential LTC coverage and allows them to take advantage of federal tax incentives.
 
For more information about selling LTC to small business owners contact your LTC Specialist today.
Shutterstock_1109235707

Why Family Should Not Be A Long-Term Care Plan

One reason why you need to bring up the topic of Long-Term Care with your clients: family.
 
Past history has shown us that parents who do not plan adequately for their long-term care needs ultimately end up sacrificing their income, assets and financial promises that they have made to pay for their care.
 
Since we are on the topic of history, it is also proven that if a parent does not have a proper plan in place, their family becomes their long-term care plan.

Parents must consider the potential physical, emotional and financial damage that is also done to the family members who are personally involved in delivering their long-term care.

There are a myriad of issues to consider when a family gets involved in their parent’s long-term care plan.
 
Among them:
  • Time Management
  • Geography
  • Funding
Think about how pressed for time your children already are – balancing families, careers and child activities.
 
Ponder also the challenges that could ensue from a care giving perspective geographically speaking if they do not all live in the same city. Then there are funding issues to consider as well, because someone has to pay for the care.
 
Further, multiple polls have taught us that most children do not want to take care of their parents, but when faced with these circumstances – they can and almost always do care for their parents… even if their relationship is not strong with them.
 
Long-Term Care and the challenges associated with it can often require more and more of family members’ involvement as time passes
 
The collateral damage that can be associated with being directly involved in a family member’s long-term care plan can often involve irreversible damage to relationships within the caregivers, and there can also be profound resentment toward the folks that the care is being delivered to.
 
Keep in mind also the opportunity costs that your family could be experiencing as it relates to their career, children, church or synagogue because the time that is usually allocated to these aforementioned items has now been allocated to you.
 
There are a variety of ways available to possibly remove this potential burden from your family.
 
Talk to your LTCi Sales & Marketing Associate today to learn more.
Shutterstock_1679198821

Cross Selling Long-Term Care Insurance

There are numerous people you know that need Long-Term Care (LTC) Insurance, many of them include your current clients. Perhaps you have already sold them a Life Insurance Policy, yet how do you get them interested in LTC?

Cross Selling can be difficult, yet when you present your client with information about LTC, they should understand the benefit of protecting themselves when they may need it.

Begin by talking about the consequences of living a long life will have on their family – and offer to put together a plan to protect them from the biggest risk they face after retirement – one that must be protected with Long-Term Care Insurance.
 
Once the conversation is going, a few good questions to ask include:
  • What percentage of your retirement assets have you set aside to pay for Long-Term Care services?
  • Are you concerned about the impact a chronic illness would have on your retirement savings?
  • If it were necessary to increase your spending by $3,000 or $4,000 a month to pay for LTC services, would that concern you?
To learn more about incorporating Long-Term Care into your product portfolio, or if you need more prospecting tips, contact your LTC Specialists today!
news_6.9.22

Help Clients Hedge Their Risk

Highlighting the cost of care can be a powerful, yet non-threatening way to engage clients in a Long-Term Care (LTC) planning discussion. It also can provide a convenient starting point for designing a policy that will meet your client’s needs and budget.

Since the future estimated average cost for multiple years of care can be quite high, it’s important that both you and your client don’t view LTC Insurance coverage as an all-or-nothing proposition.

Highlight The Cost Of Care
 
First, discuss with your clients where they would like to receive care should a Long-Term Care event arise. Based on their response, show them what the estimated cost of three or more years of care is today and in the future.
 
We can help you and your client explore the cost of care, including:
  • Current costs for Long-Term Care for all areas across the country
  • Estimated costs for LTC events lasting 1-10 years
  • Projected future costs for Long-Term Care based on inflation
Develop a Strategy
 
Once your clients have seen the financial impact that a long-term event can have on their assets, help them develop a strategy to insure some or all of the risk. Base your plan design on what you know about your client’s financial goals, and adjust your recommendations based on their budget concerns.
 
Some clients may be willing to insure part of the risk by paying a portion of their future expenses out of pocket. Others may prefer to protect all of their assets, to ensure a spouse/partner’s financial well being or to leave a legacy to their children. In either case, LTC Insurance can provide a significant level of protection.
 
Manage the Premium
 
You have a surprising amount of flexibility when designing an LTC Insurance policy. If you start with a policy that accounts for your client’s total estimated future cost of care, be sure to consider alternate plan designs that help to lower the premium, if needed.
 
Consider this approach:
 
If you started with a longer benefit period and compound inflation, consider shortening to 3-5 years to save money, while still providing ample coverage for most care needs. Leaving off compound inflation protection can make a big impact, potentially cutting the premium in half. With this strategy, consider a higher initial daily benefit to account for future cost of care increases.
 
Become a Resource
 
Become a “cost of care” expert in your community. Leverage us as a point of reference in your prospecting efforts. After seeing the potential impact that an LTC event can have on their assets, your clients may feel compelled to protect their future with LTC Insurance.
 
Contact your LTC Associate today for more information and resources.
Shutterstock_2501604651

How To Dial Down Premium To Make An LTCi Policy More Affordable

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.
Shutterstock_2198483145

Are Your Clients Prepared for Rising LTC Costs?

Over the years, we’ve observed significant trends in the long-term care market. While the cost of care among all providers has increased, facility-based care has grown at a much greater rate than home care.

If you live to 65, there is a 70% chance you will need some form of long-term care services, making it vital to create a sound financial plan for managing future costs.

Current Costs of Long-Term Care

The majority of claims are paid out for home care or assisted living facilities, which typically cost much less than nursing homes.

  • Home Health Care Aide: The national median hourly rate for a home health care aide in 2023 was $33.
  • Assisted Living Facilities: The national median annual cost for an assisted living facility in 2023 was $64,200.
  • Nursing Home: The national median annual cost for a private room in a nursing home in 2023 was $116,800.
Projected Future Costs

As these costs continue to rise, your clients’ assets are at greater risk. Considering the average three-year claim, in 25 years, with a 3% annual inflation rate, the average claim for a private room in a nursing home will reach approximately $240,000 annually, totaling around $720,000 over three years.

Planning for Long-Term Care

Given these rising costs, it’s essential to plan ahead. In 2023, long-term care insurance firms paid out a record $14.1 billion in claims. 

However, only 3% to 4% of Americans aged 50 and older are paying for long-term care policies.

Considering long-term care insurance can be a prudent step in protecting your clients’ assets and ensuring their families are not burdened with these expenses.

Contact your LTC Specialist for assistance with your cases today.

Shutterstock_2124967913

Understand Your Client’s Needs Before Presenting LTC Solutions

When discussing Long-Term Care (LTC) planning with prospective clients, financial professionals often focus too heavily on asset protection, overlooking other key benefits that LTC insurance offers.

Because LTC planning can be a deeply personal and emotional process, it’s crucial to recognize the individual reasons clients may want this type of protection.

By identifying their specific concerns early in the conversation, you can better address their unique needs and enhance the efficiency of your sales approach.

Here are some process-driven strategies to consider:

THINK – Start with Understanding Why People Buy LTC Insurance

Before meeting with a potential client, take a moment to reflect on the reasons why individuals typically seek LTC insurance. Common motivations include:

  • Preventing the burden of caregiving from falling on family members
  • Having the freedom to choose where they receive care
  • Retaining control over important healthcare decisions
  • Being able to stay in their home while receiving care
ASK – Dive Deeper into Their Motivations

During your fact-finding conversation, aim to uncover the most significant reason your prospect is considering LTC insurance. Here are some thoughtful questions to guide this discovery:

  • “What is the main reason you’re considering LTC insurance?”
  • “If the need for LTC arises, what aspects of coverage are most important to you?”
  • “As we age, many of us have concerns about our care and independence. What would be your biggest worry if you needed care?”
PRESENT – Tailor Your Approach to Their Specific Needs

Once you’ve identified the underlying motivations for your prospect’s interest in LTC insurance, you can customize your presentation to highlight the aspects of the policy that matter most to them. By focusing on the true value of the coverage, you’ll help prospects see beyond just the cost of premiums and appreciate the long-term benefits of the policy.

Bonus Tip: Many insurance providers offer additional riders and services designed to support families and caregivers.

If you’d like more details on these options, feel free to reach out to us.

Shutterstock_2401733627

LTC Insurance: Because There’s No Place Like Home

Are you aware that 70% of people who reach age 65 will need Long-Term Care at some point during their lifetime?
 
While nursing homes and assisted living are popular, there is no place like home – 80% of all LTC is provided in the home, either at the home of the person receiving care or at the home of a family member.

Considering home is where the heart is, it’s important to highlight the flexibility that home care benefits provide.

Here are a few of the benefits included in most policies:
  • Home Modification
  • Home Safety Checks
  • Durable Medical Equipment
  • Provider Care Checks
  • Caregiver Training
  • Medical Alert Systems
  • Household Duties such as Laundry, Meal Preparation, and Bill Paying
  • Managing Medications
Some home care agencies will also include the following:
  • Social activities
  • Transportation to the Doctor’s Office
  • Report of Doctors office visits to family members
Emphasize these home care benefits and you’ll appeal to your clients’ desire to maintain their independence and quality of life, while increasing your potential for a successful sale.
 
For more information about home care please contact our LTC Specialists today!
Shutterstock_1149710573

How To Help Clients Through The LTCi Claims Process

More often than not, people don’t like to admit they need help with things they once did for themselves. This often happens with those requiring Long-Term Care, once they need assistance they rely on their family to provide for them.

What happens when the family care giver can no longer be of assistance? What happens when they get too burnt out or their abilities have been surpassed by the amount and type of care needed?

Once that final step has been taken and the caregiver realizes they need extra assistance, they usually file a claim.
 
Here’s how it works…
 
Assess Benefit Eligibility: This is the time when the insurance company checks to make sure the insured is eligible for care. Usually this is when a health practitioner determines the insured is chronically ill and needs help with at least two of the six activities of daily living for a period that is supposed to last at least 90 days or if the health care practitioner determines the insured needs constant supervision due to severe cognitive impairment
 
Submit Notification: If you feel your client meets the eligibility criteria you can notify the insured’s insurance company that a claim is being made. Notification should usually be made within 30 days of the onset of the need for care or as soon as reasonably possible. Notification can usually be made by mail or telephone and should include the insured’s name and policy number as shown on the policy schedule
 
Then what?
  • Once the notice of claim is received by the insurance company, a claim form is then sent to the insured. The form should be returned along with a provider’s bill to document the proof of loss.
  • Then the claim is evaluated to verify the insured meets eligibility requirements. Often an assessment is scheduled or the insured’s health care practitioner is contacted to verify medical records.
  • Once the claim is valid, a case manager will work with the insured’s family or caregivers to determine appropriate types of care.
  • After the policy’s elimination period has been satisfied, benefits will be paid to the insured or their care provider.
Although there is a good chance that the LTCi policies you sell today won’t have claims for years to come, it is also possible for an illness or injury requiring LTC services to strike one of your clients tomorrow.
 
It is best to be prepared and understand the claims process so you are fully prepared to help your clients put their LTCi policies into action.
 
For more information about LTC or the claims process, contact your LTC Specialists today.
Shutterstock_2565640229

3 Key Questions Demonstrating The Need For LTC

Finding reasons why your clients need LTCi can be a challenge. You want them to understand the importance and need for the product, and also how it can impact them and their family.
 
Ask these 3 questions to your prospective clients to drive the point home on why having a LTCi policy is so important.
 
1. What’s your plan?
 
Your client has probably not thought about what they will do when they reach an age when they need help with tasks they are used to doing themselves. Have they thought about where they will live, or who they will live with? These planning questions are a great starting block to getting the LTCi sale.
 
2. Who do you know?
 
Ask your client if they know someone that has been in a LTC situation, or maybe they have even been in one them self? If they have seen the emotional, physical and financial burden a LTC situation can have, they most likely do not want the same to happen to their family.
 
3. How will you pay?
 
Does your client know that health insurance does not cover LTC services? Explain to them that a LTCi policy can give them the care they want and prefer. A LTCi policy can also make sure funds are available when your client needs them, then they won’t diminish their retirement savings or have to liquidate assets.
 
These questions are just the beginning on how to demonstrate to your clients the need for LTCi. Be sure to ask these questions and stress the need of LTC on your next appointment.
 
Our LTC Team is available to answer any questions you may have. Contact us today.

Load More

Back To Top

Excellence, Passion, Integrity, Collaboration and Creativity – our core values since 1974

The EPICC Center is the online source for financial professionals, designed to provide them with the essential elements they need to run their practice and increase their bottom line including breaking news, carrier / product information, market trends, sales ideas, marketing tools & resources and more.

Subscribe to our newsletter

* indicates required

Copyright © CPS Insurance Services, Inc. All Rights Reserved EPICC | Designed by Apis Productions