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April 18, 2012 at 09:37 AM
Early in my financial services career, a respected mentor taught me something that has stayed with me throughout the years: “In the absence of value, price is the only thing.”
While those words of wisdom are applicable to any product, they seem especially true of long-term care insurance (LTCI). As I travel across the nation, helping financial services professionals present long-term care solutions to both individual and corporate clients, I’ve come to realize that many are struggling to communicate the true value of LTCI.
It’s About Positioning
As long-term care policy features and benefits continue to evolve and grow more complex, it’s easy to understand why some professionals tend to dwell on the mechanics of LTCI.
Unfortunately, when you emphasize daily benefits, COLAs and other policy details, you’re much more likely to confuse clients than to inspire them to take action. Indeed, according to a Genworth/Age Wave study, confusion is the most common reason — other than cost — why Americans don’t buy LTCI.
The most successful advisors avoid falling into the product trap. Instead of pitching an insurance product, they position LTCI as a solution that plays a vital role in a client’s broader retirement planning.
By doing so, you won’t just be putting yourself in the company of successful LTCI producers, but also in the company of comprehensive financial planners, investment advisors and retirement plan providers, who almost universally include long-term care on their retirement readiness checklists.
