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Approaching LTCI For Couples With No Children

The need for long-term care does not discriminate. No matter what your income is, your marital status, or any other demographics that come into play – when you need long-term care, you need long-term care.
 
Clients with families and children typically consider themselves to have a “default” caregiver, someone who will always be on call if they were to encounter a long-term care situation. But what about your clients who do not have any children? How do they approach their need for long-term care?
 
Although couples may face the same long-term care risk as families with children, their situation may create a different set of challenges.

Not having a “default” caregiver in the form of a child can force your clients to think creatively about their long term care strategy.

Ask your clients, how do they want to live their life?
 
Living life without children opens up new possibilities and introduces some unique challenges. They may have more freedom to delve into their career and explore their interests. Yet, they may need to put more thought into long-term care than people with kids.
 
They could have a heightened need for professional assistance, since an adult child won’t be “on call” when and if they need help. And, if they’re part of a couple, they might bear a greater part of the work of providing care than they would if they had children.
 
Accidents, chronic illness, or simply the effects of aging could all result in a need for long-term care in the future. That’s why it’s important for everyone to take steps to preserve their quality of life and financial assets as they age.
 
We’re here to help you design a plan that is both affordable and provides the best solution for your clients’ needs. Contact your LTCI Sales Rep for guidance.
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Profitable Prospects Lie In Multi-Life LTCi Sales

Multi-life LTCI continues to be one of the leading sales opportunities in the long-term care insurance marketplace today. Usually the hardest part of making a sale is finding the prospect, however, a multi-life prospect might be as simple as opening your client files.

Chances are, you already have clients who could be excellent contacts to expand your LTCI worksite business.

Look for existing clients who meet one or more of the following hidden multi-life triggers:
  • Owns a business or holds a professional occupation such as an attorney, physician, CPA or consultant
  • Holds a high level position or has influence in the executive decision making process
  • Runs a successful business that’s looking to offer more benefits to its employees
  • Could benefit from the tax incentives of purchasing LTCI with company dollars
  • Owns a business with employees who could benefit from discounts and possible underwriting concessions
Keep in mind that your best prospects may be organizations that are willing to pay some or all of the premiums for five or more policies.
 
Gaining multiple LTCI sales from a single contact benefits you, but what about your clients?
Not only are there a variety of carve-out benefits to choose from; there are additional benefits they should be made aware of:
 
  • Generally not subject to ERISA
  • Employer paid premiums are often deductible as an ordinary business expense
  • May qualify for reduced underwriting and discounts
  • Unisex pricing
To learn more about the multi-life sales opportunity, please contact your LTCI Sales Rep today.
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Statistics – Can They Add Value To LTC Planning?

In the complex world of long-term care (LTC) planning, one question frequently arises: “What is the average LTC claim?”

This question, asked by financial professionals and consumers alike, reflects a common desire to quantify the need for LTC insurance and determine the appropriate benefit period.  However, the reality is far from simple.

While statistics can provide valuable insights, relying solely on averages can be misleading due to the numerous variables at play in each individual’s circumstances.

Are these statistics reliable?  How should they be interpreted?  And, most importantly, can they truly add value to the decision-making process for LTC coverage?

Click HERE for the answers to these questions and more! 

Contact your LTC Specialist for assistance with any long-term care coverage needs.

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Inflation Protection: One Size Doesn’t Fit All

Increasingly, people are recognizing the need for Long-Term Care (LTC) Insurance earlier in life.
 
Since your clients may purchase a policy 20 to 30 years before they might need to use their benefits, it’s important to consider inflation protection when you design their Long-Term Care Insurance plan.

Inflation protection riders can help protect your clients’ assets against the rising costs of LTC.

With so many riders available, which one should your clients choose? Which option is the best for a particular client depends on many factors, including their risk tolerance, personal preferences and budget.
 
3% or 5%?
 
When it comes to compound inflation protection options, your clients’ choice is often between the 3% or the 5% benefit increase riders.
 
Historically, the 5% compound inflation protection option was often considered the best choice because it maximizes the potential pool of benefits. However, the cost of long-term care is now rising at a lower rate than in the past.
 
For many years, nursing home and other long-term care costs increased at around 7% per year. Currently, the average five-year annual growth of facility care was about 4%. The cost of home care has been increasing at an even slower rate, with average five-year annual growth of just above 1%.
 
Compared to the 5% compound inflation protection option, the 3% option is less expensive, and the data suggests it may provide adequate inflation protection to keep up with the rising cost of home care.
 
Know Your Client
 
Your clients have several alternatives to help protect them from the rising cost of care. A 3% benefit increase rider may be the right option for those clients looking for dependable inflation protection at a lower cost.
 
Talk to your clients about their priorities, and help them choose the best inflation protection option for them.
 
We’re here to help you design a plan that is both affordable and the best solution for your clients’ needs – contact your LTCi Sales Rep for guidance.
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How To Breakthrough The Couple Rejection Objection

As you’ve all experienced, the majority of your clients who are couples come together as a packaged deal. So what happens when a couple applies for a Long-Term Care Insurance (LTCi) policy and only one is approved?
 
In most cases, the spouse who received the green light may no longer want a policy with a carrier who rejected coverage for their significant other. And even worse, they may decide that they no longer need coverage at all.

The reality is – if one spouse is declined, it is even more crucial that the insurable spouse has a plan in place.

Convincing the insurable spouse to proceed with the plan.
 
Client Objection: “My spouse was declined so I do not want to take my policy.”
 
In this case, it is probable that the healthier partner will attempt to care for the other – with whatever financial, physical, emotional and mental demands that are required.
 
Your Reply: “Caring for a loved one could either be met with minimum effort or it may be very strenuous. And while personally caring for your significant other, you may have do to dip into your savings, leaving little funding left for your own care.”
 
You Ask: “Would you be ready to go it alone and take care of all those new tasks that arise in a situation like that?”
 
Once you’ve overcome the objections, we will help you make certain your clients have the right LTCi plan in place to meet their needs.
 
Contact your LTCi Sales Rep for more information.
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Long-Term Care – It’s Just A Conversation Away

Long-Term Care (LTC) is often perceived as a difficult subject to discuss, but the ultimate goal – financial security – is the same as with any other type of insurance or investment that you currently offer your clients.

Don’t let the topic of long-term care intimidate you out of a potential sale.

The next time you sit down with you clients, avoid leading with product facts and statistics.
 
Try asking the following questions to start the conversation:
  • Do you have personal experience with a family member or friend that needed long-term care?
  • How and where was the care provided?
  • How was your/their impacted physically and emotionally?
  • How was the cost of care handled?
After discussing these details, ask your clients how they would handle that type of situation:
  • Have you thought about the impact to your assets and family if you were to someday need long-term care?
  • Where would you want to receive care?
  • Could you financially absorb the cost of care?
  • What level of involvement would your family have in your care?
The goal is to help your clients see LTC Insurance as the solution for a situation that could significantly impact their loved ones and their financial future.
 
They will begin to see the valuable benefits of LTC Insurance, which creates a natural segue into a discussion on product features and details. Suddenly, the topic you were hesitant to discuss has transitioned into an LTC Insurance sale.
 
We’re here to help you design a plan that is both affordable and the best solution for your clients’ needs – contact your LTCI Sales Rep for guidance.
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How To Identify The Marks Of Potential LTCi Clients

Consumers today have more choices than ever before when it comes to funding traditional long-term care (LTC) services.

While other funding vehicles may be good options for some people, a traditional LTCi policy continues to be the best option for many of your clients.

Many current LTCi policy holders share these similarities:
  • Females, age 50 to 65
  • Household income of $50,000 to $250,000
  • Married, with adult children
  • Working in a metropolitan area with a population of at least 250,000
  • A homeowner with 11 or more years in the current residence
  • A “planner” who is interested in financial issues; owns life insurance and other conservative investment products
  • Family oriented
  • Exposed to LTC issues; knows someone (a family member or friend) who has needed LTC services
  • Research oriented; an online use; self-educated about LTCi
Look through your book of business – do any your clients fit the profile?
 
If so, contact your LTCi Sales Rep – we’ll help you design a plan that is both affordable and the best solution for each of your clients’ needs.
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Using Caregiver Contracts To Leverage Your LTC Sales

A caregiver contract is when relatives are hired to take care of their disabled or aging family members. It is usually drafted by an attorney and specifies the caregiver’s duties and the length of contract (usually the elder’s lifetime). Caregiver payment can be made either in lump sums or installments.
 
How Does Long-Term Care Get Thrown Into The Mix?
 
Purchasing a Long-Term Care (LTC) policy is one way to pay the compensation promised in a caregiver agreement.
 
Please note: Many LTC Insurance policies do not allow a relative to be hired directly as a caregiver, it is important that the policy have a cash benefit.
 
Once an individual triggers benefits, the insurer pays out the cash benefit regardless of who the caregiver is. A full cash benefit will provide the same benefit.
 
It is important to discuss these planning options with current and prospective clients. An agent who knows about LTC planning as well as insurance may be seen as more knowledgeable about the options available.
 
To learn more about caregiver contracts and how to incorporate them into your sales, contact your LTC Specialist today.
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Simple Conversations That Will Close Your Sale

When planning for retirement, most people take stock of their expenses to ensure they have enough income to live comfortably. But many fail to consider the significant price of long-term care services.

The average cost of nursing home care is approaching $107,000 a year.

Making it easy to see how a long-term care situation could quickly deplete the retirement nest egg that your clients have worked hard to build.
 
Explain how Long-Term Care Insurance (LTCI) will help protect their retirement funds and close the sale with these simple conversation pointers:
 
Conversation Starter 1:
 
“Let’s talk about how your plan to live a long life could impact your spouse and your children.”
 
As people get older, they generally need more help. If your clients are like a lot of people, they mistakenly believe their long-term care needs are already taken care of.
 
Ask them if they have thought about:
 
  • Who will take care of you?
  • Will that person be able to be a full-time caregiver?
  • Where will you live?
  • Which one of your children might you be able to live with?
Conversation Starter 2:
 
“Did you know that major medical insurance doesn’t cover long-term care services? Medicare coverage is limited to helping people get back on their feet after an illness or injury. And relying on Medicare may mean spending down assets to qualify.”
 
Ask your clients how they would pay for the care they need if these options were taken off the table.
 
Have them consider:
 
  • Could you afford to pay the extra costs per year out of your retirement savings?
  • Would you have access to the funds you need? Or would you have to sell assets, cash in stocks, or dip into 401(k) or other savings accounts?
  • Which assets would you use to pay for your care?
An LTCI policy ensures that the funds your clients need are available to pay the bills for long-term care expenses – protecting their retirement assets and making their retirement dreams a reality.
 
Design a plan that is both affordable and the best solution for your clients’ needs – contact your LTCI Sales Rep for guidance.
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5 Steps To Building Your LTCi Business Plan

Developing a plan for an entire year can be a daunting task. With so many days ahead of you, it’s easy to get sidetracked and let a few months of inactivity slip and sabotage your success. It’s time to take a more disciplined approach.
 
Stay Motivated All Year
 
Be sure to write down your business plan and place it where you’ll see it each day. Also set up a repeating calendar entry each week to review the plan and the work you’ve done to achieve it.

“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” ― Abraham Lincoln

Start small and focus on building a plan with measurable and achievable goals.
 
Set Goals
  • Be Realistic – It may sound great if your goal is to increase your Long-Term Care (LTC) Insurance business, but you might be setting yourself up for failure. Instead commit to making LTC Insurance more fully integrated into your business.
  • Make Them Measurable – Numbers don’t lie, so use them to make yourself accountable. Pinpoint a certain number of applications you’d like to write, client meetings you’d like to host, or referrals you’d like to gain.
Create A Plan
  • Develop A Strategy – Now that your goals are in place, how will you reach them? Create actionable items to focus on throughout the year. Maybe it’s simply making LTC Insurance a part of every financial planning discussion you have or it’s committing to hosting quarterly education seminars in your community.
  • Target Completion Dates – Having monthly or quarterly milestones are a great way to track success, and provides you with ample time to plan ahead.
Take Action
  • Get Motivated – Your business plan may seem foolproof, but won’t work if you don’t put it into action. Begin each day with a task to help you meet a specific goal. You’ll build momentum to keep you focused and productive.
  • Commit To Your Plan – You’ve positioned yourself for success and have taken the time to establish specific goals, strategies, and deadlines. Stick to your plan and give it a chance to work
Track Results
  • Self-Evaluate – Are you ahead of your goals or are you falling behind? Regularly reviewing your progress will provide you with direction on how to focus going forward.
  • Make Adjustments – You may find that one approach works, and another does not. Being flexible will allow you to change strategies to achieve overall success.
We’re here to help – reach out to your Long-Term Care Associate for assistance with your planning.

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