Thou know’st ’tis common; all that lives must die,
Passing through nature to eternity.
— Hamlet Act I, Scene 2
Selling insurance can be tough. Really tough. In addition to the hurdles faced by anyone who sells for a living — prospecting, marketing, referrals, rejection, competition — there’s also the fact that selling insurance involves talking about scary things. No one likes to think about Alzheimer’s, chronic illness, cancer or especially, death. And yet, that’s just what advisors who sell products like long-term care insurance and life insurance ask their clients to do with every conversation: Face their own mortality.
See also: The death project
Avoidance of this uncomfortable line of thinking is one of the largest factors preventing clients from taking the necessary steps to protect themselves and their families. In survey after survey and countless conversations with advisors every day, people cite their discomfort with discussing illness and death as a major factor in their lack of coverage.
‘Tis a vile thing to die, my gracious lord,
When men are unprepared and look not for it.
— Richard III Act III, Scene 2
A recent poll by the AP-NORC Center for Public Affairs Research found that two-thirds of people over age 40 have done little or no long-term care planning. One-third admitted that they’d rather not think about getting older at all.
But whether or not they think about it doesn’t change the fact that it’s happening, or diminish the unpleasant results facing those who don’t prepare. Government figures show that nearly 70 percent of Americans will need an average of three years of long-term care at some point after they turn 65.
In the UK, Aviva found that one-fifth of the population says they are worried about the possibility that they or a loved one will contract a serious illness during the next six months. Yet, just as in the U.S., a huge disconnect remains between people’s concerns and their level of insurance coverage.
In her article, “Why We Need to Talk About Death and Dying,” Judith Johnson cites the following statistics:
- 80 percent of Americans do not put their personal affairs in order before they die.
- Approximately 20 percent of Americans spend their last days in an ICU.
- The average funeral in the U.S., including a cemetery plot and grave, costs between $10,000 and $12,000. Only about 5 percent of Americans preplan their end of life rituals.
Meanwhile, those in the life insurance industry are well aware of the fact that life insurance ownership recently fell to a 50-year low even though more Americans than ever acknowledge the important role it plays. People know they need it, but many simply refuse to do anything about it – refuse to face the facts.
According to the National Centre for Social Research (NatCen), 45 percent of people feel death is a long way off.
In our fear, we substitute what we wish to be true for what we know to be true.
— Sigmund Freud, “Reflections On War and Death”
“Statistics, facts and figures tend not to resonate anymore,” says Stephen Forman, senior vice president of Long Term Care Associates. “The Alzheimer’s Association recently came out with a bunch of new statistics: 1 in 3 people dies with Alzheimer’s. It’s incurable. Very scary stuff, right? But if you tell people 1 in 3 will die from it, most people tend to live in denial and say, ‘That’s very scary for them. I will be one of the 2 in 3 that won’t die from it.’ People tend to reverse those statistics, so you can’t win that argument.”