Contrary to what you might hear, long term care insurance will sell itself. Long term care affects every one of us to some degree, whether it's a story you've heard or a story you've lived. If we love at least one other person in this world, long term care will be an issue that we are inherently curious about. The conversation you have with your clients is not just about protecting their assets, then — it's about protecting the people they love. This is the conversation you must have with your clients in order to successfully sell LTCI.
I use the word "conversation" because that's how LTCI is sold; your responsibility as a producer is to simply guide a well-charted conversation with your client. It's essential that you uncover what your clients' biggest concerns and propose a solution that meets their needs. Often, producers will hone in on asset protection. While it's an important issue for most of us, it may not be the main motivator for all clients. To figure out what is, ask open-ended questions and listen to your clients.
- Why are you inquiring about long term care insurance?
- Have you had a recent change in health?
- Tell me about your personal experiences with long term care.
- Have you ever acted as a caregiver?
- Would you want your children to help care for you if the need ever arose?
- Where do you plan on living in retirement? Will it be close to your children or grandchildren?
When you ask enough questions, you'll discover what motivates your clients. If your clients are repeatedly telling you that they don't want to burden their children, or how they cared for their parents, you can better relate the benefits of an LTCI policy and how they'll help alleviate those concerns. If clients are worried about preserving assets, then your LTCI presentation can be about managing risk and protecting their portfolio. It's important that you relate the benefits of long term care insurance back to the issues that are keeping them up at night.
If you're looking to transition a conversation to extended health care planning, ask alternative questions and, again, listen closely.
- We have taken care of your disability income or life insurance planning, but how would you plan to pay for extended health care should you or your spouse ever require such care?
- Do you know what Medicare or Medicaid covers?
- You have worked hard in planning for retirement. Is protecting your portfolio from unforeseen expenses an issue you wish to explore?
- Which assets would you liquidate first to pay for extended health care?
- Have you personally experienced a long term care event with a loved one?
When meeting with your next client, apply the 60/40 formula: Sixty percent of an LTCI sales presentation should be about asking questions and talking with the client, while 40 percent is about educating and presenting a simple solution. More importantly, once you ask these questions, listen to your clients' answers. As insurance professionals, listening is sometimes our hardest task. We're so excited about the products and solutions we have at our disposal, but people buy LTCI because of the questions you've asked and the time you've allowed them to voice their concerns — not how much product knowledge you have.
Have a great 2010, and remember: ask more and speak less to achieve LTCI sales success.
Brian M. Johnson is the director of business development for New York — National Long-Term Care Brokers Ltd. He can be reached at bjohnson@nyltcb.com or 518-371-5522 ext. 154.
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