Q: Convincing prospects of the need for LTC insurance is difficult. Can you provide some approaches to respond to this objection?
A: There are several ways to overcome this objection. Kathleen Smith, an agent in Mt. Juliet, Tenn., shares her approach to how she handled two sets of prospects.
Couple #1: Kathleen prepared a quote for Kim, 57, and Connie, 59, and sent the illustration with this explanation:
* The combined annual premium for you both is $3,213. A $65,000 CD earning 5 percent will generate enough interest to make the annual premium payment– keeping the principle intact.
Using the attached 3-year illustration, for Kim the breakeven point after paying premiums for 30 years (to age 89) would be 82 days of care/benefits. For Connie the breakeven point after 32 years (to age 90) of premium payments would be 71 days.
If you don’t purchase the insurance and did need care, the local average daily cost of care is $150 per day. Assuming a 5 percent annual increase in costs, that equates to $617.42 per day in 30 years (ages 86 and 90).