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January 20, 2002 at 07:00 PM
Dont Let Multi-Life LTC Insurance Sales Pass You By
Today, the employer and association market is the fastest growing market for long term care insurance.
However, we LTC producers sometimes just “dont get it.” Sometimes, we allow multi-life LTC insurance sales opportunities to pass us by.
These opportunities relate to the many types of family member discounts the industry offers to buyers in this specific market–discounts that can range between 5% to 20%, depending on carrier.
No other insurance segment offers such a wide range of discounts in this manner, yet LTC marketers do not always promote this strong sales advantage.
Before looking at this more closely, lets review the critical factors in this marketplace.
LTC insurance in the employer market offers numerous incentives: increased productivity, improved employee retention, competitive compensation package, protection of retirement benefits, and the ability to have paid-up coverage by retirement, if desired.
Employers are allowed to pay for the coverage with tax-deductible dollars, either for all employees or a select few, under the Health Insurance Portability and Accountability Act of 1996, which classifies LTC insurance as health insurance. Premiums paid by an employer are not considered taxable income to the employee, and benefits are received income tax free.
Associations and affinity groups are another part of this market. These consist of individuals who share a common cause or interest, and have charters and bylaws. Such organizations include: professional associations, alumni associations, and national associations, just to name a few.
Carriers in the affinity group market have different guidelines as to who can qualify as an affinity group. Some carriers are more liberal than others and may allow the following to qualify: bank customers, credit union customers, Chambers of Commerce, condominium associations, etc.
