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Life insurance tip: Beating 'the high cost of waiting'

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One of the secrets in this industry is a factor called “the high cost of waiting.” It means the younger you are when you purchase the policy, the less you pay over the lifetime of the policy.

Here’s a good guideline to use. It may vary by specific policies, but, overall, if your clients are 45 years of age now and they wait until age 65 to buy, it will be three times more expensive. There are two reasons for that. First, because the premium is based on age at the time of application and they are now older, it is higher. And, second, they need to take a higher daily benefit to keep pace with inflation.

In my client presentation binder, I have a page summarizing this concept. It has two columns — one is titled “Now” and the other column is titled “Waiting.” Here’s the copy I use:


  • Lower premium
  • Pay less $ over life of policy
  • Insurable
  • Preferred rates
  • Assets protected
  • Choice of quality care


  • Higher premium
  • Pay more $ over life of policy
  • Not insurable
  • Rated up
  • Assets exposed
  • Limited choices

A significant portion of my book of business was written on 49 year olds soon to turn 50. When I would receive an invitation to a 50th birthday party, I would call the friend to RSVP and mention this was the best time to apply for an LTC policy. Not only did she buy a policy, she told her husband and friends — so it was a great way to get referrals.

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Margie Barrie is a principal at Hagelman Barrie Training Solutions and also serves as national marketing coordinator for the LTCP designation. She is also a nationally recognized expert in training agents to sell LTC and the author of “50 Ways to Boost LTCI Production.” For more information, go to


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