Whats Driving Sales Of LTC To The Boomers?
One of the things that is driving long term care insurance sales among baby boomers, says Maxine Katz, president, Especially For Seniors, Northbrook, Ill., is that boomers are discovering they are not invincible.
“Now it takes them longer to recover from working out at the gym and much longer to look as good as they used to. They can no longer just put on jeans and look good, so theyre aware of the aging process,” she says. “Also they see whats happening to their parents.”
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Adding to their emerging awareness of need is that boomers are seeing first-hand that neither the government, nor their children are likely to finance their long term care bills, says Steve Olivier, director, agent sales, Blue Cross Life & Health, Newbury Park, Calif.
But even when boomers decide they need a plan for covering LTC costs, it can be months before they actually figure out where the money will come from.
“LTC is not an easy sell,” Olivier says. “Ive talked with a number of agents whove said its taken individuals a year or two before they say yes. “
The delay usually stems from the client not taking the need seriously when first approached about it. Also, many are trying to get their basic finances in order, according to Olivier.
“There are certain people who are very good at planning and accounting for their money and they budget,” he says, “and there are others who arent so good.
“As an agent, part of the responsibility is to make them understand this is something theyll need in the future; once the seed is planted, then theyll look for ways to set aside the money they need,” Olivier says.
The boomers Katz works with are affluent and generally carry more life insurance than they need.