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August 18, 2002 at 08:00 PM
Ways To Help Consumers Evaluate LTC Insurance
By
To buy or not to buy long term care insurance is a dilemma being faced by 73 million Americans age 50 and above. But in spite of that vast and ever-growing market potential, many LTC marketers are failing to recognize what is needed to motivate millions of consumers to evaluate LTC policies.
Fortunately for actuaries, its estimated that 40% of the market will never have the need for private LTC insurance. This fact results from a number of alternatives that include Medicaid and other federal assistance programs, services available from informal caregivers, self-insurance, reverse mortgages, annuities, life insurance, and death itself.
But, since no one knows who will be in that 40%, most people do need to be looking into this issue and considering their options, especially the option to buy private coverage.
This begs the question: How can you, as a producer, help consumers make this all-important decision? Well look at a few ideas here, based on what consumers tell me they want and need.
Whether they are considering buying policies for themselves or assisting a parent in this most important decision, consumers tell me they want to hear straight talk that includes objective educational information that helps them make informed, rational decisions.
They dont want, and dont deserve, self-serving hype, confusion, and emotional blackmail as part of any sales presentation. Without being reminded, most adults are already concerned about disabilities in their later years–disabilities that could impact their hard-earned nest eggs and rob them of independence and dignity in their golden years.
What they do need is help deciding what to do about that concern.
You can assist in this by encouraging consumers in your community to do a good deal of homework on their own before selecting a sales representative.
This includes suggesting they read books on the subject, guides published by state insurance departments, and brochures from the National Association of Insurance Commissioners. It also includes encouraging them to discuss the topic with friends and neighbors who have purchased the product, as well as to consult with professional advisors.
