As we near the end of Long Term Care awareness month, I’d like to throw out some thoughts on why this is so very important and what you need to be talking to your clients and prospects about.
Traditional Long Term Care insurance used to be the only means of protection against the astronomical costs of receiving care. Over time, the “bells and whistles” on these traditional products got whittled away, and the premiums went up and up and up.
Why? Primarily because insurance companies had no idea how many claims would be processed.
What does that tell you? It tells me that this type protection is highly utilized and with the aging Baby Boomers, it will be even more so. That tells me that there is a huge opportunity out there for me and for you to EDUCATE the buying public on what options are out there today, and which one best fits their specific needs.
I compare the old traditional Long Term Care insurance policies to Homeowners Insurance. We all have it, in hopes that we never have to use it. And, if we don’t ever use it, no one but the insurance company benefits from all of the premiums paid into it over the years. That is because there is no Return of Premium if you cancel the policy, there is no death benefit if you die before using the Long Term Care benefits and you can’t “short pay” the premiums. You must pay the premiums on traditional Long Term Care insurance, until the day you die, or you just can no longer afford it. Who wants to be paying insurance premiums after they retire? Not me.
There are solutions!! The new products available today, DO offer solutions to all of the above negative aspects of Traditional Long Term Care insurance.
- Do you want to structure your plan to have premiums guaranteed paid up in 1 year, age 65, age 72, whatever? Yes, we can do that!
- Do you want a death benefit available to your beneficiary, should you never use the policy for its Long Term Care benefits? Yes, we can do that!
- Do you want an escape route, just in case things change in the future and you no longer want or need the Long Term Care protection? And would you like to have all of your premiums refunded to you, in this event? Yes, we can do that!
Don’t get me wrong, Traditional Long Term Care insurance does still have its place, especially in the older age market over about age 65.
I have personally seen the detrimental effects of both the person needing care, and the caregiver at home providing it, when there is no money to pay for someone else to care for a loved one. My step father battled Alzheimer’s for over 7 years, and it took a huge toll on my mother’s health. My father has had numerous strokes and if it were not for my step mother, I have no idea what we’d do to provide for the quality of care that he needs.
ISG has the tools that you need in order to get in front of your clients and prospects to educate them on this ever-growing need for protection. We have created our own tools, specifically the “3 Unique ways to Protect against the Costs of Long Term Care” piece. It is highly educational for both advisors and their clients and has opened many doors for many sales.
The buying public WANTS to have Long Term Care protection, they just simply don’t understand it. Be the hero and go talk to your clients about this. The Holiday Season is the ideal time to do so, as everyone has their family and the well-being of their family on their minds during this time of year.
Go out and make it a great day!