One of the most common objections advisors hear when offering long term care insurance to wealthy clients is, "My assets are in great shape and will be able to cover long term care should I ever need it. Why should I buy long term care insurance?" Due to the effectiveness of this response, LTCI sales are tough and few affluent clients have purchased the product. However, there are ways to overcome this show-stopper:
* Provide a positive outlook.
* Think outside of the product box.
* Use technology to supplement the numbers.
To address the first step, it's necessary to present LTCI as a service that is intended to protect anticipated income while keeping taxation at bay. Offering the benefits of the service, such as preservation of assets, reduction of estate taxes, and the transfer of wealth to family members, can drive home the point that having LTCI in the event of needing long-term care can keep clients from needing to liquidate their assets. Above all else, remember that the attitude that you attribute to LTCI often influences the attitude you receive from prospective clients.
Beyond having a positive attitude about LTCI sales, thinking innovatively is an essential component of selling to the affluent. Ask yourself this question: Are the needs of my client being met with current products? If not, brainstorm new avenues to try. Keep yourself abreast of changes in the LTCI market and apply those solutions strategically to your client's unique needs. Thinking creatively while addressing the specific desires of your client can make you an indispensible advisor to your client's financial portfolio.
Finally, it's not enough to be persuasive and creative; you've got to back it up with the statistics to close the deal. Consider looking into software that analyzes your client's current financial position and offers potential solutions for the future. If you choose to tackle the numbers yourself, be sure to utilize appropriate technology in your presentation. Show your client that you are up-to-date with the financial world, yet connected with traditional advising methods. Prove yourself to be the bridge that connects your client to their financial security in the future.
LTCI, though often a tough sell, doesn't have to confound the savvy advisor. When prospecting to wealthy clients, be aware of your personal attitude toward the product, your understanding of current trends, and your ability to position yourself as a necessary mediator for your client to communicate with a changing financial environment.