Common mistakes to avoid in talking LTCI with clients:
- Selling LTCI as an investment product. "Far too many agents," says Jesse Slome, head of the AALTCI, "back themselves into a corner because they sell it to baby boomers as an investment product: 'For this amount of premium, this is what you're going to get back in benefits.' The reality about insurance is that some people are going to pay just a little and get a huge benefit and some people are going to pay in a significant amount of money and never get benefits."
- Using the "buy-now-when-it's-cheaper" argument to kick off an LTCI discussion. Boomers tend to tune out a cost-based pitch, says Slome. "Why on earth would they buy now, especially when money is tight, when they believe they can wait and buy it later?"
- Presenting more expensive policies to highly price-sensitive clients. Don't start by suggesting a costly cash policy to a client who might be best suited to a cheaper reimbursement policy, cautions Slome. Instead, start with a basic product and add in features only to the extent the cost of the policy stays within the person's budget.