Objections are a given in almost every LTCI sale. Even when you’ve pre-qualified the prospects and know they need the coverage and can afford it, they’re likely to throw out several reasons why they shouldn’t buy the policy. Here’s how these experienced LTCI advisors overcome the most common objections they encounter.
I won’t need the coverage
No one likes paying insurance premiums, especially when there is a chance they’ll never claim a benefit from the policy. That logic leads to the “I won’t need it” objection, which is encountered frequently by Holly Hunter, CFP, with Hunter Advisor LLC in Portsmouth, N.H. She explains to clients that LTCI isn’t retroactive, and delaying the purchase increases the risk the coverage won’t be available when it’s needed. “You hope you’re never going to use it,” she tells them, “but if you do need it, then you’re really, really going to need it and you’re going to wish you had it. And unlike a home, with long term care insurance, if you wait too long, there’s a very good chance that you won’t qualify–physically, you won’t be able to get it.”
Ron Palastro, CFP, CLU, ChFC, with R.S. Palastro Financial Planning Services Inc. in Brooklyn, N.Y., explains to prospects that they have a gap in their health insurance coverage. He demonstrates that there are just two good ways to fill that gap: self-fund the LTC cost, which assumes a sufficient amount of available assets; be sufficiently poor to qualify for Medicaid; or have long term care insurance.
He then asks the prospects if they know anyone who needed LTC. They always have a personal story, he’s found, and that story usually turns out badly for the person needing care and their families. At that point, he uses the prospect’s story to support the case for LTCI: “I ask them, ‘Is that what you want to happen to your family, God forbid something happens to you?’ So I think when people start understanding the impact of their not wanting to think about it and sticking their head in the sand, they do come around most of the time.”
Marilyn Pensack, CLTC, an MDRT member who works with Long-Term Care Insurance Planning in Newton, Mass., frequently interacts with couples. She’s found that shared-care policies can effectively address the “what if I don’t need it” objection.