More than half of the U.S. population will require some form of long term care during their lives, according to Americans for Long-Term Care Security. Considering this eye-opening estimate, long term care insurance should practically sell itself, right? Unfortunately, as insurance agents and financial advisors know, it's not quite that simple.
Margie Barrie, author of "50 Ways to Boost Your LTCI Sales," explains that long term care insurance is an extremely difficult product to sell because consumers generally don't want to think about the possibility of requiring such care.
As the president of LTCI Consulting Group Inc., Barrie knows the long term care insurance (LTCI) business inside and out. Soon after she started selling LTCI in 1990, she quickly developed a closing rate of 80 percent and a persistency rate of 98 percent. In "50 Ways," Barrie offers up some of her expertise in a practical, easy-to-reference guide. "For those of you who are beginning to sell or are having a hard time selling long term care insurance, this book should be extremely helpful because it reveals the sales tips that have propelled many of us to become successful producers," she says.
Statistics are your friends
"Statistics aren't sexy, but they can help you make the point for LTCI," Barrie says. However, she says you should use statistics sparingly when meeting with prospects. If you overwhelm potential clients with too many numbers, you'll just confuse them and risk scaring them away. Choose just a handful of compelling long term care statistics and use them wisely. Here are a few convincing stats Barrie offers in her book:
o For a couple turning 65, there is a 75 percent chance that one of them will need long term care (Wall Street Journal, June 2000).
o 10 percent of people aged 65 or older will stay in a nursing home for at least five years, according to the U.S. Department of Health and Human Services.
o By 2030, when the last of the baby boomers have reached the age of 65, it is estimated that an annual stay in an assisted living facility could start at $109,300, and the yearly costs of a nursing home could be $190,600 (American Council of Life Insurers, 2000).
Look for warning signs
Because most prospects are hesitant to admit they may need long term care at some point, you have to be very careful when discussing LTCI with a potential client. "Do not insult your clients by talking about the features of something they haven't decided to purchase," Barrie stresses. "Instead take the time to question and talk with your clients about their issues and concerns."
Barrie says that countless LTCI sales are lost because the insurance agent is oblivious to the warning signs their prospect exhibits. She explains that most prospects have "silent objections" about their age and potential need for long term care. "Many senior clients are either scared to admit that they're getting older or are certain that purchasing LTCI guarantees that they're actually going to use it," she says. You should never assume that the client is being completely open with you. "Your clients will vocalize their superficial concerns but will keep silent about their true fears," Barrie explains. This is why you must ask prospects as many questions as possible and attempt to uncover their doubts. After all, you can't assure the prospect that LTCI is an invaluable purchase until you understand their concerns.
Don't waste your time
Obviously, you can't sell a product to someone who can't afford it. That's why Barrie says it's very important to find out early in your presentation whether or not a prospect can afford to pay the LTCI premium.
It's clear that most seniors need long term care insurance -- they simply don't want to admit it. That's what makes a LTCI agent's job so challenging. In "50 Ways to Boost Your LTCI Sales," Barrie offers up an abundance of proven techniques that can help both rookie and veteran agents amp up their LTCI sales. "When you've finished reading this book, you will feel more comfortable sitting face-to-face with prospects and begin to feel the passion that fuels so many of us in this industry," Barrie promises. "If just one piece of information in this book is the difference for you between frustration and success, then all my efforts were entirely worth the time."
Amy Bell is a freelance writer and frequent contributor to the Agent's Sales Journal. Visit her Web site at www.writepunch.com or email her at amy@writepunch.com.
