Drudy Andrews, CLTC, LTCP

 It is still a challenge to help consumers fully understand the value of LTCi and to stop holding out for new government entitlements.  It seems the LTCi industry takes a step forward and two steps back but I still have great faith that this industry will continue to grow.

There seems each year to be a new challenge to the growth of this market and some would say that this year it will be the economic environment. I agree that in these economic times belts have to be tightened, luxuries postponed, and investments scrutinized. For many consumers postponing the purchase of a new car, or moving to a bigger house may be prudent. Cooking in and eating out less may be wise and paying as you go rather than pulling out the plastic may be a lesson learned, however some actions should not be delayed.

Protecting family and financial security can not be postponed and should be a priority over superfluous luxuries in any economic environment. 

Insurance that protects family; income and wealth are investments in security. Where many consumers once thought their income and investments would be enough to take care of them they are finding that the downturn of the market has eroded what they believed would provide for a secure future and are seeing how quickly one’s financial outlook can change. Where the loss may not leave them destitute by any means, it may have left them understanding that another significant drain on their assets could be very problematic.

The biggest financial risk that Americans face during their retirement years is the cost of health care. Much of that care is due to chronic conditions and the physical effects of aging requiring long-term care. Medicare (health insurance for Americans 65 and older) has stringent limits on LTC services as do other major medical health insurance plans.  The primary source of payment for LTC services for American’s with even modest assets is paid out of pocket from income, savings, and investments. Expenses for LTC are the primary cause of impoverishment among our nation’s elderly. 

Even in this economic environment, especially in this environment, NOW is the time for your clients to include LTC planning in their financial and retirement planning and consider LTC insurance to complete that plan.

Here are some points and suggestions you might want to consider as you approach your clients to open up a discussion on LTCi.

1.     LTCi premiums are based on age, health, benefit design and product selected

o       Purchasing a policy now rather than later saves premium in the long run. (We can illustrate the cost of waiting)

o       Prescreening for medical issues helps us recommend a company with the best opportunity for issue and increases your chances of placing the case. (We can provide prescreening questionnaires to help gather important information. When you know of a health issue we can tell you what information to gather to help us determine insurability.)

o       Don’t assume your client qualifies for preferred rates unless you have prescreened for health issues. (Having to re-sell the plan with a higher rate increases your chances of losing the case.)

o       We will help you recommend a plan that fits your clients’ current budget and fits their goals.

2.     Demonstrate how the client can pay for the insurance.

o       Find the premium by using investment earnings.

o       Help identify disposable income that can be used to pay for coverage (I have a great yellow pad presentation)

o       Ask for a referral to their employer so you can explore any opportunity of an employer sponsored plan, discounting the premium. (This can potentially lead to multiple sales.)

3.     Premiums are tax deductible to corporations and self employed individuals.

o       Identify your clients who are business owners than show them how they can save on the net cost of LTCi through the tax advantages

o       Sell the business owner. Show him why he should have this important coverage, then recommend an employer sponsored plan for employees.

4.     Don’t overlook available discounts.

o       LTCi offers marital, family, spousal, partner and household discounts. Make sure you understand which of these the client might qualify for so you don’t overlook an opportunity to reduce the premium.

5.     Lean on us for the answers to your questions regarding LTC benefits and provisions. We are here to help you look like an expert even if you are not.

6.     Think about your clients.  Make a list of clients

o       who are:

a)     Age 50 and older

b)    Married

c)     Divorced or single

d)    Business owners or self-employed

o       who have investments with you

o       who have disability insurance

o       who have purchased annuities

o       who have come into a lump sum of money

o       who you have freed up funds due to changes in their other insurance protections

o       who have declined traditional LTCi in favor of self-insuring

7.     Contact me:

o       Drudy Andrews, CLTC, LTCP

drudy@ssabrokerage.com

804-285-7110 or 800-552-3435

o       Let me help you prospect your clients to find gold.