Thursday, April 17, 2014

LTCi “To buy or not to buy" close


Here's a great technique for advancing the sale of long-term care (LTC) insurance with your clients. Once you have identified the need for LTC planning and have presented options to your client, try using this strategy.

"Mrs. Client, with this insurance you can make one of two miscalculations..

1.     You can purchase the coverage, pay premiums throught the years, live a good long life.. and then die without needing the care. Actually, this is not so bad. Except you've lost out on the opportunity cost of the capital (premiums that could have been invested elsewhere)... OR

2.     You don't plan for LTC (you don't purchase a policy) and you end up needing care services. In this scenario, I see many families face real emotional and financial hardships because they have not planned for a care event. They do what they can, but there's no easy solutions.. and assets can be drained down.

So I guess this really comes down to: which one of these scenarios would you consider more painful?"

·         If your client chooses the second option, sale complete.

·         If your client should happen to choose the first option, then it's time to consider flipping over to a hybrid life/LTC solution

No comments:

Post a Comment