Note: To view the charts referenced in this article, click here.
Q. I'm having trouble convincing prospects of the need for LTC insurance. Even though I spend time discussing this concern, somehow they don't seem to get it. Can you suggest a method that has worked for other agents?
A. Convincing prospects of the need is one of the most difficult parts of the sale. For an approach to help explain the need, I turned to Phil Grossman, a very successful MetLife agent based in Peoria, Ariz., who has developed what he calls a Chart of Risks. He compares LTC to other areas where consumers have protected themselves by sharing the risk with an insurance company.
"I use the risk charts to explain that LTC is the greatest risk we face, and why should we treat it differently than the other three," Phil says. He tells prospects that this is insurance that will cover you if an unfortunate event happens and discusses the probability of them experiencing this event. He shows them the charts (click here to see charts) and explains that these are industry figures that compare the probability of other insurances that you have already purchased to protect against loss and that you hope you will never use.
"The first is insurance on your home. How many times have you filed a claim where the total amount was more than $5,000? Ninety-nine percent of the people say 'never.' How long have you had a home? The person says 45 years. So what you are saying is that in 45 years, you have never filed a claim for more than $5,000?
