Your goal is to provide enough education to convince the prospect of the need, while avoiding information overload. Brian Johnson, director of business development at National Long-Term Care Brokers, Albany, N.Y. uses what he calls the “six phases.”
Phase 1: Ask questions. You should help them discover why they need long-term care insurance and the implications of not having a solution. Questions include:
- Why are you interested in LTC?
- How did you become interested in investigating LTCI?
- Have you looked at other LTC plans?
- Tell me about your family. How old are your parents? Do you have kids?
- Has anyone in your family ever needed care?
Phase 2: Explain what LTC is. I suggest using both a traditional definition and a practical one. Example: “To better understand long-term care, think of the activities you performed when you woke up this morning: climbed out of bed, walked to the bathroom, used the toilet, showered, dressed and ate breakfast.”
Phase 3: Explain why they should plan for LTC. Explain why the insurance is the best answer by providing the following conclusions:
- Medicare: If it pays anything, consider it a bonus.
- Medicaid: Takes away choices and control over where you will age.
- Self funding: Does it make sense to self insure and assume 100 percent of the risk?
- LTCI: The logical solution.
Phase 4: Benefit options. Provide guidelines for selecting the most appropriate benefit period, daily benefit, elimination and inflation protection.
Phase 5: Ask for the sale and close. The question should change from: “Will you buy, Mr. and Mrs. Prospect?” to: “What plan do you feel works best for you and your family?”