How would you respond to a prospect who says...
I can afford to self-insure in the event that I need long term care.
"That may be true. But let me ask you three questions. 1. You insure your auto when you could also self-insure that, don't you? 2. You insure your home when you also could self-insure that, don't you? 3. So why would you not insure your long term care with discounted dollars when there is a 40 percent chance you will use it? Compare that with a less than 1 percent chance you will have an auto claim over $6,000 or only a .07 percent chance you will have a home claim over $6,000. Which is the most prudent coverage?"
Phillip Touhey, Minnetonka, MN
"Many of my clients have told me that before they had a chance to determine for themselves whether it made sense for them to transfer to an insurance company the risk of needing long term care. In my experience, I've yet to sit down with a single person who likes to waste money, even when they have more of it than they need. We know that long term care in our area can cost as much as $110,000 a year for private care, whether provided at home or in a nursing care facility. So, how would it feel to you, your wife, or your children, writing out a check for $9,000 a month for many years? Therefore, the question you should be asking yourself is, 'Would it make sense to transfer that risk to an insurance company at a cost that is only a fraction of the risk you're currently exposed to?'"
Steven O'Brien, Belchertown, MA
"The low average of $6,500 a month for a nursing home and an average stay of two-and-a-half years before hospice means an out-of-pocket expense of $195,000. Do you have $195,000 in your savings account?"
Frank Herschede, Danvers, MA
Next month's objection:
"Insurance isn't a priority for me right now."
How do you overcome this objection? Email the editor at ASJeditor@AgentMediaCorp.com. Please include your first and last name, city, and state, and put the word "Objection" in the subject line. Your response may be printed in an upcoming edition.
