Advanced Markets: Overcoming LTCi Objections

If you’ve ever discussed long-term care insurance with wealthy clients, I’m sure you’ve run into this objection – “If I need long-term care, I can pay for it from my own investments.  I don’t need to pay money for long-term care insurance.”  One apparent reason is the tax advantages; however, there is another angle we wanted to share.

An advisor called one of our long-term care experts in the home office anticipating the “self-insure” objection – and honestly believing it herself.  She had discussed the need for long-term care insurance with a wealthy couple – let’s call them Bob and Mary.  Bob and Mary had substantial assets and were not enthusiastic about paying premiums – especially since there was a chance that they might not ever need care.  Our long-term care expert went straight to the heart of the matter and asked the advisor some questions.

Question 1:  If Bob calls you tomorrow at 6:00 p.m. and tells you Mary unfortunately needs care, who do you call?  The advisor thought a minute and said, “I don’t know.”  Now, of course, that is not a great answer.

The expert continued with Question 2:  Assuming you decide to call a home health care agency, which one do you call?  Again, the answer was, “I’m not sure.”

And finally Question 3:  How will you know what kind of care will be needed and who can provide that care?  Unfortunately, the only answer to that question was silence.

The next time you find yourself agreeing with prospects who want to self-insure, ask yourself these questions.  If your answers are similar to hers, then how could your clients have better answers?

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