Both insurance and health professionals see the importance of long-term care insurance (LTC) for everyone. As the population ages and people live longer, there is a greater likelihood that someone will require assistance living in a nursing home, special care facility or assisted living facility. A person who is 32 years old is 600% more likely than to become disabled or need this type of care. That’s staggering.
However, these facts and figures won’t cut it if you are trying to sell LTC as an insurance agent. Everybody in the insurance industry knows how many rejections they receive from potential customers. LTC is likely to take over the role of life insurance which has been rejected most of all insurance types. LTC rejections are similar to life insurance rejections.
*People are afraid to consider the possibility of long-term care. People also hate to think about their own deaths.
*People who are in the earliest age and have the best health to be eligible for the lowest premiums on LTC are those who are also preoccupied with other things and don’t feel they can afford it. The same applies to life insurance.
*People who don’t have the financial means to purchase it, or are too young to use it, will convince themselves that they won’t ever need it. They then reject it when they are ready. The same happens with life insurance.
What are some of the things people say in order to reject LTC?
* “I am going to sleep in my death; it runs in our family.”
* “We have decided that we will stay in our home and care for each other if any of this happens.”
* “I take better care of myself than most people; this cannot happen to my.”
A life insurance policy that pays out means someone has died. A long-term care policy that pays out means that someone’s independence and life are being severely compromised. Some people, when they imagine themselves in this situation, would prefer to die. These types of insurance are necessary, but they are not something most people want to consider. They tend to delay the purchase of insurance until they are able to qualify for it and can get low premiums. Then, they may find that it is too expensive or they don’t qualify. This is called denial.
What can an agent do to overcome rejections and attitudes?
Agents will find it very useful to create a visual chart or graph that shows people the costs of buying LTC today and the consequences. Visual and intuitive people are naturally visual and intuitive. Hearing about what might happen in the future at an undefined time is an abstraction for many agents, regardless of how much reason you give them. They are more likely to believe it if they can see it. Even if they remain in denial verbally, they will feel compelled by it.
You can use visuals to ask intelligent, pointed questions about things that you haven’t thought of before.
* “Let’s suppose that you have been permanently injured in an accident involving a car. How will you pay for the care you require for the rest your life?
* “The average cost for LTC services in skilled nursing homes ranges from $77,000 to almost $115,000 for a single year. The average stay is two years. Is there enough money in your bank account to cover this? What if you stay for five, ten or more years?
*Medicare has strict limitations on the amount and duration it will pay you. Medicaid requires you to live in poverty before it pays any money. Are you willing to rely on these programs?
Is it not in your best interest to leave your assets to your children and grandchildren when you pass away? What if there wasn’t any to inherit?
* “If your spouse or you unexpectedly required care, would you consider that the survivor would be willing to live with your children?”
The LTC will sell itself if you present your visual presentation and do a financial analysis. If you can’t close the deal, there are some people who just don’t learn.
