probably will never be a period when policies are as affordable and favorable as they are today. Insurers just now are beginning to see the completion of the first cycle of actual policyholder experience, and as America ages, claims will increase.
"We think premiums will trend upward," Gelbwaks says. "At the same time, we think claims will, too, and we've already begun to see insurers begin to write managed-care elements into their policies. That protects insurers, but you'll have less choice. We think planners should advise clients to visit long-term-care insurance sooner than later," he adds. "Once you turn 60, every year you wait costs an 11% to 12% increase in premiums."
The Key To Marketing LTC Insurance
1) Know what you're talking about. Clients have done a lot of homework and ask a lot of questions. If you're unprepared, they'll know it.
2) Represent a lot of top companies (preferably ones that have not raised premiums significantly in the recent past). This will help you zero in on the best policy for a client and help to navigate underwriting and the huge differences regarding what health conditions insurers accept, says Tim Otto, president of M&O Marketing, an LTC insurance wholesaler in Dearborn, Mich.
3) Be prepared to meet a variety of objections. Typical client objections include: I can't afford a policy; I won't need a policy; My kids will take care of me; I'd rather die. "When you're 60, it's easy to say you don't want to live to be 100. Will you feel the same way when you're 99?" Virginia planner Arthur Stein asks clients.
4) Understand that with couples, males are the main objectors. "They won't say it, but what they think is that their wives will take care of them," Stein says.
5) Don't fall for the myth about the wealthy self-insuring. They don't self-insure their Mercedes, their homes, their health or their business liabilities, and they won't want to self-insure long-term care to the detriment of their estates.
6) Visit the leading care facilities in your locale to understand how they work and what they cost.