Bank Reps, Customers Share Doubts About LTCI
Bank insurance representatives and their customers both share similar fears about long-term care insurance, although from different perspectives, observed Gregory D. Vacca, first vice president, Cal Fed Investments, during the recent Financial Institutions Insurance Associations fall conference here.
For instance, bank agents and financial advisors fear that the potential revenue from a sale of long-term care insurance is not worth the risk of losing the customer, if they push too hard to sell the product, said Vacca.
(Cal Fed Investments was recently absorbed by New Yorks Citigroup when it acquired California Federal Bank in Sacramento.)
For their part, some bank customers think the benefits of LTCI are not worth the risk of making the wrong decision in buying the insurance, he noted.
Vacca said that the rep who is afraid to push too hard should learn more about the products benefits because the insurance can actually help retain the customer for the bank, thereby offering opportunities to cross-sell even more products.
To allay the customers fears, the proper approach is to sell LTCI as part of the individuals financial plan to protect their assets so they can pass them on to heirs, Vacca advised. That keeps the customers money in the bank.