Bringing up the subject of long-term care may be difficult. But, in fact, it may be one of the most important discussions a client will ever have with their financial professional. Unfortunately, too many clients avoid the subject like a contagious disease, thus, too many financial professionals shy away from the topic.
But with careful thought put into the approach and proposed solutions, an outcome can be had that will leave your client feeling good about your expertise and professionalism. Here are five tips to assist you with client LTC conversations.
Be careful how you open the LTC conversation.
The most common mistake a financial professional makes is the approach. When you say the words “long-term care” to clients, they often hear the words “nursing home”. This often causes the client to shut down, for this is not a discussion they want to have.
The good news is we know statistically that 79% of new LTC claimsare for home health care1. We also know most people would prefer to receive care in their home as long as possible.
Consider using an approach such as: “Mr. and Mrs. Smith, as part of what we want to accomplish today with your financial strategy, let’s discuss how to keep you in your home longer should you no longer be able to care for yourself.” This approach changes how the client views the conversation into something positive— being able to remain in their home.
Make sure you understand the important differences between products and their features
Understanding the various LTC options available opens the door for LTC sales you may have overlooked. In addition to traditional stand-alone long-term care policies, there are now asset based LTC products and solutions linking LTC riders to life insurance and annuities. Each of these products addresses a different client need and/or obstacle. Make sure you understand what protection the products offer.
Type of care that qualifies for coverage varies between companies and some companies may limit claims to permanent conditions only. By having a thorough understanding of the different categories of LTC solutions that exist, as well as their features, you will have a better chance of putting a solution in place for your client.
Connect the dots between the client’s LTC needs, goals and financial picture