Over the past 20 years, several insurance companies have made a splash in LTCI and then subsequently exited the industry. Recently, a major LTC insurer announced it will cease selling new policies, and other major carriers have filed for yet another round of premium increases on some of their policy blocks. This presents a challenge for agents. If you've already had an existing LTCI client who's been notified of a premium increase, you may have had to "sell" the coverage to them all over again.
Gathering and dispensing information
If your client has not yet received a formal letter from their LTCI company, refrain from offering too much information until both you and your client know what the increase will be, and until you understand any revised coverage options the insurer might present to the policyholder.
In the meantime, take the opportunity to underscore why your client bought a policy in the first place. Clients want to know they aren't throwing good money after bad, so you'll want to be prepared to explain again the value of purchasing coverage to protect themselves; their spouses, partners, and families; and their income and assets.
Inquire about any personal experiences your client has had with family members or friends who needed long term care services in the time since they purchased their policies, and find out what that experience was like for the family. Did the person who became ill or injured have LTCI coverage? If you know of success stories from your own clients who have filed a benefits claim, share them; these true stories often go a long way toward reminding your client why he or she bought insurance in the first place. You might even ask the family of a client who filed a claim for permission to put your concerned client in touch, so they can share about their experience. If you've ever proactively helped a policyholder with a claim, let your client know that, too, and describe what you've been able to achieve through this coverage.
You can also put a potential premium increase in perspective by sharing other insurance illustrations. For instance, when hurricanes throughout the South and East coasts led many insurers to significantly raise homeowner's insurance premiums, those with the option to cancel their policies (e.g. those with no outstanding mortgages or liens that required homeowner's insurance) often resorted to different ways of lowering their premiums. Higher deductibles or increased co-insurance sharing might have helped in these situations – and consumers often address concerns regarding health and car insurance premiums similarly.
Build alliances
Another approach that can pay dividends is to continue to strengthen your professional relationships with strategic partners in the long term care industry. Connect with attorneys who specialize in elder care and who are members of the National Academy of Elder Law. Attend lectures on long term care issues that are offered in your region. Get to know elder care social workers or geriatric care specialists, and stay in touch with them. When you build this team of experts and let your clients know you're ready and prepared to help them, it shows that you are on their side and can bring them the most up-to-date information and expertise.
This might seem like a lot of effort, but put yourself in your client's shoes and try to imagine how the news about premium increases might affect them. You can provide comfort by understanding their questions and helping them decide whether they can afford to keep their coverage in force. To do this, you need to demonstrate that you know where they're coming from.
