According to the Agent's Sales Journal's exclusive Long Term Care Insurance Survey, only 6 percent of respondents sell the bulk of their LTCI policies to clients younger than 50. Most policies are sold to those in their 50s and 60s (42 percent and 47 percent, respectively). So why are younger clients such a hard sell, and how can you crack into this market?
One of the most obvious reasons why consumers should buy LTCI at an early age is because the premiums are lower, says Patrick Bradley, executive vice president of national sales for LTCI Partners. Also, the underwriting process is smoother because younger prospects tend to be healthier than their older counterparts.
There's one problem, however: Many agents are just not pitching LTCI to those under 50. "Nobody's talking to them," says Bradley. "I talk to agents every day, and they don't even start talking about long term care planning until the client is in their 50s, and in many cases not until they're in their 60s."
Here are some tips for motivating clients under 50:
o Sell the value of the policy. Younger people are not invulnerable to accidents and illnesses such as multiple sclerosis and amyotrophic lateral sclerosis (Lou Gehrig's disease). However, many see long term care as something only older people need. This is not the case. Show them how an LTCI policy can meet their needs.
o Show your clients what they're getting for their money. Many policies have features such as inflation protection and other riders that may be attractive to younger buyers.
o Don't hesitate to bring up the topic, no matter how old the client is. Let them know what you do, and that you can help them with their LTC planning, with or without selling them long term care insurance.
o If you're a younger advisor, buy a policy. Bradley says that when he tells clients he owns an LTCI policy, they're more willing to talk about it. It shows that you practice what you preach and adds to your credibility
The younger market is not an impossible sell. You just need some tools in your arsenal and a good idea of how LTCI can benefit all consumers -- even the younger ones.
For more information call 800-933-9449 or email ASJeditor@agentmediacorp.com.
