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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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Your Clients Aren’t Average – Why Is Their Long-Term Care?

Some carriers like to claim that your clients don’t need Long-Term Care (LTC) protection beyond the average length of a care need. But preparing for only the average length of a care need can leave a large gap.
 
The Story of Averages
 
The average length of an LTC need is typically longer for women than men (3.7 years vs 2.2 years). However, in a survey of leading long-term care insurers, that story of averages doesn’t hold up.
 
With five of the seven carriers, men met or exceeded the length of claim for women, with each exceeding a million dollars! Planning for the average would’ve only covered a fraction of the cost.

The belief that average lengths of care are sufficient could create one of the most devastating financial decisions in life.

Addressing only the average care need excludes the possibility of a life-long diagnosis like Alzheimer’s or Parkinson’s. Lifetime protection is the only way to ensure that every client has exactly the amount of protection that they need, whether it’s for two months, two years, 20 years or more.
 
Your clients aren’t average, and their LTC protection shouldn’t be either. Contact us to learn more about Continuation of Benefits options, including Lifetime, to help your clients be protected against costly LTC needs.
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Making The Case For Private LTC Insurance

As baby boomers enter their retirement years, many mistakenly assume government programs will meet their future Long-Term Care (LTC) needs. But both Medicare and Medicaid have limitations and may undergo significant changes in the face of the growing federal deficit.

Now is the time to start having conversations with your clients about LTC planning, the risk of depending on government programs, and how those programs differ from private LTC insurance.

This educational approach will help position you as a valuable resource for your prospective clients.
 
Resources for Long-Term Care:
  • Medicare, like most health insurance, is primarily meant to cover acute illnesses. It does pay for some LTC expenses, but there are significant limitations, and you must be age 65 to qualify. Some benefits are payable for the first 100 days per benefit period in a skilled nursing facility, if you enter within 30 days after a hospitalization of at least three days, and if you are receiving skilled care and continue to get better. Medicare does not cover custodial care — help with the activities of daily living that a person could need for years.
  • Medicaid is a joint federal and state insurance program that pays a large portion of the nation’s LTC expenses. Most state laws require that you spend down your assets before you become eligible for benefits, and may limit the options as to where and what kind of care you can receive. Some states have proposed revisions to Medicaid that could further limit eligibility in the future.
  • Private LTC Insurance is a more dependable option and provides benefits for care in a variety of settings, including the familiar surroundings of home. You can assist your clients in taking responsibility to help secure their future by designing an LTC Insurance plan that will fit their specific needs and budget. That way, they can feel confident they will get the care they need without worrying if they will need to rely on a government program to pay for it.
Did You Know? Your social security statement says, “Medicare does not pay for Long-Term Care, so you may want to consider options for private insurance.”
 
Contact your LTC Sales Associate today for more information and resources.
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Profitable LTCI Sales: 4 Items You Need To Know

Traditional Long-Term Care Insurance placement rates have suffered due to carriers offering more stringent underwriting guidelines – declines on one spouse or the other and policies issued at rate classes greater than applied for have caused a spike in policies not taken or accepted by one or both of the insureds. The consequence of this is lost profitability to the producer and general agent.
 
We spend untold hours running quotes on prospects without the faintest idea if they will qualify for coverage due to health reasons; additional time and resources processing the cases; and countless hours talking to underwriters on the phone trying to get them to change their minds in a no-wiggle room environment. Ultimately, the producer aggravates potential new customers or alienates existing clients.
 
The reality is that producers and general agents don’t make the rules.
 
When companies across a market segment harden underwriting we have two choices; find another product to sell or adapt tactics. In light of the fact that many of us are committed to long-term care planning, how can we continue to help consumers in this difficult environment?
 
There’s a simple answer; get better at field underwriting the clients’ health profiles before beginning the quoting process. This not so revolutionary concept is easily accomplished by any producer or advisor.

A brief review of one or two insurance company underwriting guides will provide the basic questions one needs to ask prospects and clients.

We also have a one page health questionnaire that can be used to guide producers through the primary issues that impact Long-Term Care Insurance underwriting decisions.
 
The four primary items one must know are:
  1. Height and weight
  2. Tobacco use
  3. Recent major health issues or surgeries that may be pending
  4. Current prescription medications being taken (Very important as it is indicative of what may be ailing someone)
With this basic information we can zero-in on insurability and/or rate class.
 
We can also recommend the insurance company that is most likely to look favorably on the prospect’s health issues. The producer appears professional because they’ve done some meaningful research for the client, and the chances of an unexpected underwriting decision are mitigated.
 
Doesn’t it make sense to ‘put the horse in front of the cart’ by getting basic vital health information from the prospect before a proposal is presented? Who wants unpleasant surprises after the fact? The process goes much smoother, everyone’s valuable time is not wasted and selling long-term care insurance becomes a profitable endeavor.
 
Contact your LTCI Sales Reps for assistance.
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5 Reasons Referrals Are Your Best Sales Opportunities

If everybody knows referrals are a good way to find prospective clients, why does asking for them seem so hard?
 
Many producers think a request for referrals will come across as imposing or rude. But think of it this way: asking clients for names of people who are just like them actually can be considered a compliment.

When you ask for referrals, you’re acknowledging your clients made a smart decision and you’re simply asking them to share the results of that decision with others.

For example, in your search for prospective Long-Term Care clients, you might say:
 
I’m interested in meeting people much like yourself – people who are concerned about (protecting their retirement assets, avoiding becoming a burden to their children, remaining in their homes, etc.). I would really like the opportunity to talk with some of your friends and relatives – to share with them some of the same information we’ve gone over today. Who do you think we could help?
 
Asking people you already know to provide you with the names of people they know, will allow you to spend less time locating qualified prospects and more time selling to them.
 
Here are the 5 reasons referrals are your best sales opportunities:
  1. You approach prospects on a favorable basis. Having a friend or acquaintance in common greatly increases your odds of setting an appointment.
  2. It gives you credibility. Your client obviously felt the service you provided was valuable enough to share with others. And that helps to establish your value.
  3. It can boost your confidence. Making calls to referred prospects is a whole lot easier than making cold calls because you’re approaching people on familiar, comfortable and favorable terms.
  4. You can devote more time to selling. For every one appointment you get through hours of cold calling, you should be able to get at least three referred leads from a single sales interview.
  5. You get more well-qualified prospects because they can be qualified in advance. Asking for as much information as possible from the person providing the name allows you to be well prepared when you call a referral.
For more information or prospecting tips, contact your LTC Specialist today.
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3 Easy Ways To Kick Off The LTCI Conversation With Retirees

Some of your retirement-age clients may have dismissed Long-Term Care Insurance (LTCi) in the past, often due to concerns about high premiums. But today, with more flexible and affordable options available, it’s the perfect time to revisit that conversation.

By tailoring your sales approach, you can show clients how LTCi can fit their current financial goals and retirement plans—without stretching their budget.

Here are three ways to re-engage this audience:
  • Shift the Mindset: Some Coverage Is Better Than None – Help your clients understand that having some level of LTC protection is far better than having none at all. Even a modest policy can go a long way in helping manage future care costs—and offers peace of mind in the face of uncertainty.
  • Tap Into Their Real Concerns – Bring the conversation back to what matters most to them:
    • Preserving their retirement savings
    • Spending quality time with family
    • Avoiding becoming a burden on loved ones

When you connect LTCi to their lifestyle goals and values, the product becomes more than just insurance—it becomes a solution.

  • Highlight the New Flexibility in LTCi Plans – Today’s LTC Insurance policies are more customizable than ever. With adjustable benefits, inflation options, and shared-care riders, you can design a plan that aligns with nearly any budget or priority.
Need Help Crafting the Right Plan?

We’re here to support you. Contact your LTCi Sales Rep to build an affordable, tailored solution that works for your clients—without compromise.

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Why Women May Be The Answer To Your LTCi Sales

Not only are women living longer than ever, they’re also the target market that will drive your LTCi sales further.
 
Women typically have spent some time during their life taking care of another person – a daughter, sister, wife, mother or friend. As they look to their futures, they must consider how they are going to take care of themselves.

With 70% of people over the age of 65 requiring assistance due to physical or cognitive impairments, and women’s life expectancy being 83.1 years, they have a higher chance of needing long-term care.

Why Long-Term Care Insurance?
 
Planning ahead can help protect your clients’ assets and allow them to get care covered in a variety of settings, including within the comfort of their own home.
 
LTCi is especially important for women who may be single, divorced, or widowed as they do not have a built-in spousal caregiver as some of your other clients may.
 
Talk to your female clients about taking the important step to consider how the need for long-term care could impact their future.
 
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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A Solution For The Client Who Wants It All

Client’s today are looking for solutions with complete flexibility that solve multiple needs, for a number of different situations. Often times, the client is searching for a “perfect” solution that guarantees a winning scenario in all circumstances.

For those exceptionally competitive clients, who are looking for a successful outcome in all scenarios, a Linked Benefit solution is the perfect fit.

While the future can never be predicted, one thing you can guarantee your client is that one of the following three scenarios will happen every time:
  • They will pass away without an LTC claim and their beneficiaries will receive a tax free death benefit
  • They will have an extended health care event and gain access to leveraged LTC benefits
  • They will later decide they want to surrender the policy and the carrier will provide a full refund of premium
With a Linked Benefit solution, you can provide a solution for not just one or two scenarios, but all three.
 
A Linked Benefit Policy covers both Long-Term Care (LTC) coverage and life insurance, and at the same time offers a Return of Premium Rider.
 
Linked Benefit policies attract people who:
  • Are retired, or approaching retirement
  • Are more affluent with higher net worth
  • Want to protect against potential LTC expenses AND leave a legacy to their loved ones
These policies help prepare your client simultaneously for a potential long term care event, an unexpected death, or immediate access to cash. Your clients’ needs may change with time, so the more options and flexibility, the better.
 
To show your clients how to position themselves in a winning hand, no matter the scenario, contact your LTC Sales Department today.
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Expand Your Business By Pursuing This Key Target Market

The “younger” segment of the LTC Insurance market (people age 45-55) represents a great opportunity to expand your business.

But to be successful, it’s critical to understand their unique needs and concerns around buying coverage.

Doing so can help you to anticipate and overcome objections, present solutions more effectively, and ultimately, create more positive outcomes. Here’s a helpful strategy to follow:
 
Know Your Audience
 
Individuals in the 45-55 age bracket often understand the need for LTC planning, but have not purchased a policy because of perceived affordability issues and/or competing priorities such as future college expenses, retirement planning, or caring for aging parents.
 
The majority of LTCi sales are to people under 55. Your biggest challenge is creating the sense of urgency for them to take action sooner rather than later.
 
Anticipate Objections
 
When discussing LTC planning with younger prospects, you may hear:
  • “I’m too young to deal with this right now.”
  • “Currently, I’ve got other priorities to deal with.”
  • “I can’t afford to add another bill to my monthly expenses.”
Respond Effectively: Before you can overcome an objection,it’s important to acknowledge a client’s concern and show empathy. This demonstrates that you are actively listening to their needs and concerns, which will help to build trust, and ultimately, enable the client to feel comfortable about moving forward.
 
Move Toward A Decision
 
Buying LTC Insurance is not an all-or-nothing proposition. You can take advantage of the flexibility you have to adjust the policy design. Show plan options with a premium that fits their budget. Here are two sample responses that address common objections:
 
Why Now Versus Later: “I hear what you are saying about your competing financial obligations and priorities. Since coverage is often much more affordable when you are relatively young and healthy, delaying this decision can make buying coverage even more challenging later. Let’s explore a few alternatives that might help us take advantage of your current age and health.”
 
Too Expensive: “I hear what you are saying about the monthly premium and your current budget. The most important thing is to have some level of coverage, so that you don’t ignore the risk altogether. Let’s look at some plan designs that still provide a strong level of protection, but better fit your current budget.”
 
Did You Know?
 
The average length of an LTC Insurance claim is 2.85 years. So when the premium cost is the biggest concern, look at different policy designs with a 3-year Benefit Period, which can provide ample and very affordable coverage for the majority of clients.
 
Contact your LTCi Associates for more resources and materials to help expand your LTCi business.
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How To Turn Idle Assets into LTC Protection

Do your clients have “idle money” you don’t know about? Perhaps they have some emergency funds sitting in savings, money market or a CD, and it’s just not working as hard for your clients as it could.

Do your clients have money that could be better used to help them plan ahead for the risk of a future extended health care need?

Consider reallocating a portion of these assets into a linked benefit solution.
 
Here are some potential benefits. If your clients:
 
  • Change their mind. With the Return of Premium Provision, clients can get at least their initial premium back.
  • Do not use the LTCi benefits. Beneficiaries get a tax free death benefit.
  • Like the idea of instant leverage. Instantly provide your clients approximately 2x their initial premium for a death benefit, and depending on the product, nearly 2x to 6x their initial premium in covered long-term care benefits (amounts will vary due to age and gender).
  • Need LTCi. The benefits are tax free.
  • Want a tax break. Covered LTCi benefits and life insurance death benefits are income tax free.
A linked benefit solution is a win-win proposition. Let’s get your clients’ money working harder. Contact your LTCi Specialists for more information.

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