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Worksite LTCI can boom during busts

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With the impact the recession is having on businesses of all sizes, you might think that employers are looking to limit or reduce employee benefits packages in an attempt to reduce expenditures. Ironically, the converse is true.

Though unemployment rates are high, and qualified employees may be available, savvy employers are looking to retain their employees because of the costs of acquiring and training new employees.

In case you’re thinking that it’s pointless to be focusing on workplace long-term care sales given all of the current financial upheaval, bear in mind that one largely unrecognized aspect of a declining economy is an increasing exposure to long-term care expenses. Many employees may have been planning, formally or otherwise, to use their 401(k) plan to help cover their expenses. Yet, over the past 12 to 18 months [this article was originally published in Feb. 2009], many 401(k)s have dramatically decreased in value. And the cost of long-term care hasn’t gone down. In fact, it continues to trend upward.

[But] remember, long-term care insurance has never been, and never will be, a “line ‘em up and sign ‘em” kind of benefit. If anything, worksite marketing can be more difficult, requiring two or three “kitchen table” sales — the human resources person, the employer, then each employee.

When working with the employer, make sure they agree to the following steps, at minimum:

  • Roll out the long-term care insurance offering independent of all other voluntary benefits.
  • Convey the need for the employer to contribute toward the premiums in order to lend credibility and importance to the program.
  • Obtain the employer’s sign-off for the worksite marketing program that will provide for at least 10 to 12 employee “touches,” or communications.
  • Require the employer to permit informational meetings during the work day, where you can make a short presentation, be available to answer any questions and take applications.

Remember that simply making the product available is not enough. Follow through for success by selling the program at each level and by instituting a solid enrollment process.

Editor’s note: The preceding is an excerpt from the article, “Turn the tough economy into your LTCI worksite marketing opportunity,” by Christopher Matz. It originally appeared in the February 2009 issue of Life Insurance Selling. Click here to read the entire article.