As an industry, we've allowed people to tell us that:
- They don't want LTCI because they are never going to a nursing home, without us telling them this can be the only thing that keeps people out of nursing homes by providing the money they need to hire help at home.
- They are going to self-insure without any input from us about the true cost of doing so (by calculating care at future costs and the lost investment opportunity of pulling those funds out).
- They're too young, without us explaining they will pay more for coverage the longer they wait because they will have to buy a larger benefit due to inflation — and that there's a good chance they won't be able to qualify medically for a plan if they wait.
- They can't afford the premium because it is a bad economy, without us telling them that they simply cannot afford to not protect their retirement with LTCI.
I continue to believe that long term care is the real health care crisis in America, and we only have a few years to get LTCI to the masses in time to make a difference. Here are three ways this can be done:
- Worksite LTCI: In 2008, 51 percent of all LTCI policies were purchased through the workplace work. That's a combination of true group and multi-life, but multi-life is driving the bus, with a growth rate of 47 percent between 2007 and 2008.
How to do it: Break into this market by networking with employee benefits specialists. Since most employees are now going through a long term care event with a family member, they are hungry for the news that their own children don't have to go through the same thing with them. And amazingly, most employees aren't complaining about the economy. They are just appreciative that their employer cared enough to make LTCI available. The secret to participation rates of 20 percent or more is a six to eight-week educational program that drives employees to the employee meetings, where they'll be offered personal consultations for themselves and their family members after the meeting. - Partnership LTCI: Using the Partnership plan as an additional incentive will increase worksite LTCI sales.
How to do it: Network with other professionals to increase individual sales by holding retirement planning town hall meetings in your area and working in the Partnership message that families can protect their assets and avoid estate recovery. Seminar titles such as "Don't Bet the Farm – Is Your Family Protected?" can be effective in rural areas, as many families have no clue that a farm that has been in the family for generations can be jeopardized by estate recovery. - Combination annuity/LTC products: Now, Americans can exchange older non-qualified annuities for these combination products and pull out the gain tax-free for qualified long term care expenses.
How to do it: Network with annuity marketers to get into this market — and to help the annuity marketer learn how to be sure the LTCI benefits are meaningful.
Someone once said that courage is just fear that has said its prayers. So don't be scared about trying something different in the LTCI market — you owe it to your clients and prospects.
