Long Term Care Sales

The Long Term Care sale is really not that different from any other insurance sale. 

• The agent must first determine if the Client has a "Need".

• The agent must then solve that need. 

• The agent must then help the Client see that this is a real need.

• The Client must then perceive  that this need is important to him.

• The Client must then wish to do something about this need.

• Finally, the agent must find the money, and then he must close the sale.

The need is 80% of the sale, the product while important is only 20%, so focus on the need.

Sell the need, Don't get bogged down in policy details. You are not going to sell much Long Term Care by comparing policies or prices.

1. Fact Finding
You do not have the right to ask anyone to buy Long Term Care insurance
unless you have done your fact finding.

What is the size of the estate?  Assets - Who owns them?  How well are they invested?
What about income?  Is it safe?  Is it adequate?  Likely to last long enough?
Will pension income terminate upon the death of a spouse?
What are the client's wishes regarding a surviving spouse, children, grand-children, others.
What about charitable bequests?

2. How Much Is This Going To Cost Me?
Your client has heard Long Term Care is Expensive.  He thinks he can't afford it.
Agree with him.  Admit that Long Term Care insurance is very expensive.  Explain to him that Long Term Care insurance is costly only because the cost of Long Term Care is so extremely high.  The most expensive mistake he can make is to need Long Term Care and not to have Long Term Care Insurance.

3. Attitude Towards Long Term Care
What experiences has the Client, his friends, or family had with with Long Term Illness?
Can he visualize himself or his spouse in need of care in a Nursing Home, in an Alzheimer's Facility, an Assisted Living Facility, or requiring Home Health Care? 
Is he convinced that the government will provide?   Is he being realistic?

4. Date of Birth
Long Term Care is frequently purchased just before a birthday when rates go up.
Lots of younger people are buying Long Term Care.  It's a real bargain compared to waiting, and what if you need it before you decide to buy?  Yes, it can happen to anyone.

5. Children
Who are they?  Where do they live?  Should they be involved in the buying process?
Children are frequently the unseen decision makers or breakers.  Suggest that they be present for the discussion.  Explain to them the importance of Long Term Care in preserving the Estate.  You may wish to suggest that they help pay the premium.

6. Health (Insurability)
Ask detailed health questions.  Hospital stays.  Chronic illnesses.   Problems getting insurance.
Write down the names and dosages of all medications.

7. Other Long Term Care policies already in force.
You would be amazed how often this is overlooked.

8. Savings
Are your client's income producing assets barely adequate to meet current needs?   If so,  how in the world can you expect them to pay for Long Term Care insurance?   Recognize that without a reasonable amount of income, while your client may believe Long Term Care insurance is a great idea, they cannot afford it.

Your extremely wealthy clients (Assets is excess of $5,000,000) probably don't need to buy Long Term Care insurance.  Surprisingly, many however do buy it..  They are just too darn smart to attempt to self-insure such a very large risk.

The clients that should be purchasing Long Term Care insurance, and are doing so in increasing numbers are well above the poverty level, but they are not multi-millionaires. They are the great middle class.  They possess significant estates, have a great deal to lose if unfortunately illness or accident intervenes, and are coming to realize that the government is not going to do the job for them.

9. Asset Protection
A Long Term Care Partnership Plan may be appropriate.  The Partnership Plan is an economical way to protect your assets.  Unfortunately it does not protect your income.
It does not avoid the need to deal with the Social Services (Welfare) Department.
Explain the Pros and Cons carefully.

10. Motivation    Motivation     Motivation

Medicare pays for very little Long Term Care. Only up to 100 days at most.

Medicaid is Welfare.  They undress you down to the skin before they give you a dime.

Only after you are cleaned out and wiped out, can you expect any assistance.  Is that what you want after a lifetime of hard work?  Is that what you want for your widow or your mother?

How much help and financial assistance can you expect from your family members?

Is your spouse really strong enough to lift you out of bed, turn you, lift you into the bathtub?

Would you want to accept financial assistance from your children to pay for your care?