Selling Long Term Care Insurance: Tips from the Pros
When it comes to long term care (LTC) insurance, policies can be harder to sell that than the more mainstream policies like auto, home, health and life insurance.
- People don't like to think that they might one day need long term care.
- Middle-aged consumers are more preoccupied with saving for retirement and putting their kids through college.
- Younger consumers don't feel a pressing need to purchase LTC.
Despite these complexities, a career in LTC insurance can be highly lucrative! To help you overcome these obstacles and increase your closing ratio, we at InsureMe have gathered some tips from the pros to help you stay on top of your game.
Creating the Need
The simple fact is that anyone can become incapacitated at any time. According to some statistics, by age 32 the chance of becoming disabled for a 90-day period is six times greater than the chance of death. Furthermore, it's estimated that half of all Americans 65 and older will need LTC.
Because most prospects turn their cheek on thoughts of needing long term care, you can create the need for your services by presenting such statistics. Doing so will drive home the point that, at some point in their life, they may need long term care and likely won't have the resources to pay for it.
While you should be careful not to employ scare tactics to make a sale, it's important to pose "what-ifs" to younger and middle-aged clients and prospects.
You might try some of the following:
- "What if you were permanently injured in an auto accident? How would you pay for it?"
- "The average cost of LTC services in a skilled nursing home averages $70,000 per year. What if you needed these services for five or ten years?"
- "Medicare and Medicaid resources are depleting. What if there are not enough funds to support your needs later in life?"
You may also want to ask the client or prospect about the health of their parents. The possible need of long term care often becomes real after the prospect thinks about financially supporting loved ones. At this time, you'll want to remind your prospect that the rates for LTC coverage are much cheaper during younger and middle-aged years—a 45-year old woman would pay an average of $645 per year; a 72-year old woman would pay over $3,600.
Employing New Marketing Maneuvers
Have you gone through the sales pitch, the statistics and the "what-ifs" and still not made the sale? If the answer is yes, you're not alone. But what many agents don't realize is that time often changes a client's or prospect's needs and circumstances—emphasizing the importance of following up on leads that have previously turned down your LTC services.
According to Phillip Sullivan, CEO of SellingLTC.com, as a lead ages, it becomes neither good nor bad—it's simply a person who wasn't interested in LTC at one time or another.
In his recent column in Heath Insurance Underwriter magazine,??Sullivan expressed success with forming a list of clients, prospects and referrals to contact about LTC. And, because not all prospects and clients may know that you offer LTC coverage, developing a letter detailing your services will remind contacts that you can help them in this area.
After you've sent the initial letter,??Sullivan suggests sending follow-up letters to your contacts every three to six months with reminders or facts about LTC coverage.
You may wish to include some of the following information in your follow-up correspondence:
- Changes in LTC-related legislation
- New issues related to LTC
- Interesting facts, studies or articles you've found on the subject of LTC
- Testimonials from satisfied clients
Informing your contacts about happenings in the world of LTC will help raise awareness about the coverage and how living without it could affect them.
After several mailings, you may wish to send your contacts an invite to an evening seminar on LTC and related issues—sitting down face-to-face with your prospects and explaining the benefits of LTC insurance will help to further your business relationship with prospects and increase the chances of growing your business.
Patience and Perseverance
In today's world of instant gratification, it's easy to feel frustrated by the lack of immediacy in LTC sales. Have heart—a career in LTC insurance can be profitable and rewarding! By making an emotional connection with your prospects, selling with conviction and sticking to your marketing plan, you'll notice an increase in sales commissions—and fulfilling business relationships—for years to come!
This information was provided by InsureMe, the leader in online insurance leads for the insurance industry. Since 1993, InsureMe has helped thousands of insurance agents succeed in the insurance business by providing top quality leads that are both detailed and affordable. For more information on InsureMe leads, please visit our agent Web site at agent.insureme.com.