Q. I’m having trouble closing a number of prospects because they complain the premium is too expensive. Do you have any suggestions how to overcome that objection?
A. The premium amount has always been a problem area, even before the rounds of rate increases by many carriers. Working separately, two industry leaders have developed a similar approach to meet that objection head-on – Scott Boyd, LTC director of TNBC, and Barry Fisher, vice president of Republic Marketing Group.
“When agents present an LTCI policy by saying, ?I’m recommending a policy for $200 per day of benefits … and the premium for the two of you is $6,200,’ many prospects counter with objections,” Boyd says. “What occurs is a sort of disconnect, where they are hearing that for more than $6,000 a year, they are getting $200. The problem is the prospect is having difficulty processing the true value of the policy benefits.”
“The solution is to present the true value of the policy in conjunction with the premium,” Fisher explains. “The focus of your LTC presentation should be the amount of money the insurance company will deliver at the time of claim and what the client needs to pay for that protection.” Fisher has developed a software program called “The Less Than Lifetime Solution” for agent use, to better illustrate the concept for prospects.