How can selling long term care insurance differentiate you and your business?
Did you know that:
o Over 21% of women surveyed by Genworth plan to buy LTC insurance in the next 3 years?
o Protecting themselves against unforeseen circumstances is one of the top 4 financial concerns for women, according to the same study?
o The typical family caregiver is a 46-year-old woman who has at least some college education and provides more than 20 hours of care a week for her mother, according to the AARP?
If you’re a broker looking to set yourself apart in the marketplace, long term care insurance targeted to women could be your signature product. Women are an important market segment. They play a key role in making health and financial decisions for themselves and their families.
A vital planning strategy
Long term care is a critical issue for women, who are likely to be caregivers as well as recipients of care. Of the 23 million people in the United States who provide substantial amounts of unpaid care, 70% are women, the AARP reports. Of those who provide constant care, the percentage jumps to 80%.
LTC insurance is a vital but underused strategy in planning for a retirement that meets the clients’ needs without draining their resources. It is also important for safeguarding the financial well-being of women still in the workforce, who could become caregivers for elderly parents or other relatives.
Women are also disproportionately likely to need LTC. Of nursing home residents who are 75 and older, 77% are women.
Approaching the market
Consider your relationship with your best clients. You are their trusted advisor; they go to you for guidance and will listen to you.
The general buying practice of women is to speak about their needs in story form-relating an incident that happened to someone they know and care about. Through their stories, they will share their fears and concerns, enabling you to understand how to best solve for the need. Be sure to listen patiently and ask questions.
Here are some suggested approaches:
o When you bring up long term care, present it as a family issue first, then as a solution for protecting their assets and lifestyle. Ask your client or prospect, “If you experience a long term care situation, how do you plan to pay for it?”
o When approaching an existing client over the phone, let her know you are thinking about her, that it’s time to do an annual portfolio review and discuss how LTC insurance may help protect their assets.
o If your client is not sure she will use an LTC policy, talk with her about a universal life policy with an LTC rider. This allows her to take care of a potential LTC scenario while exercising control.
o When talking with a business owner, let her know the purchase of LTC insurance may have certain tax advantages.
o Reinforce your role as a trusted advisor by helping clients through the process. Share long term care stories you have and acknowledge their need for information.
o Provide your clients with a range of information and a variety of choices to help protect their retirement and plan for LTC issues.