HYBRID
Presented by Richard Mangiameli If you look up the definition of “hybrid”, one of the results is “anything derived from heterogeneous sources, or composed of elements of different or incongruous kinds”. We can find Hybrid Power, Hybrid Literature, Hybrid Games and of course Hybrid Vehicles. In the insurance industry, we have hybrid insurance products where insurance companies have created products that are composed of different elements; annuity or life insurance products with elements of long term care insurance. LIMRA studies show that in 2013, 67% of people were worried about having sufficient money for a comfortable retirement and 58% were concerned about paying for long-term care services, while 39% express concern about financial impacts of premature death. It’s possible to address all three concerns with many of the new hybrid products available today. Call me to learn more!
Transactional Selling vs. Solution-Based Selling
Presented by David Corwin My money (pardon the pun), is on solution-based selling; the difference being that transactional-based selling is too much related to the product itself. In other words, it means suggesting or pushing a particular product to your client before even learning that it might not benefit them. Imagine going to a car lot wanting to buy a pickup only to find out that the salesman seems to want you to take ownership of this great, totally awesome four door sedan. I find that many insurance professionals operate exactly in that manner. Solution-based selling can be defined as the process of developing an understanding of the customer’s needs and objectives, and then offering solutions that will help the customer address their unique objectives. Fact finding will not only uncover issues, but you’ll also learn things that you might not have, had you just tried to sell them a product. Here are some other benefits to adopting a solutions-based sales practice: • Cross-sales opportunities – you’ll uncover other areas where you can provide a service and/or product that will meet their needs. • Referrals, referrals, referrals – use any method you can as a reminder to always ask; you’ll get more introductions to other people. If it’s on the fact finder as a reminder, then it’s only natural that you’ll ask. • You’ll also know what other advisors and/or attorneys they have. • Wills and trusts – you will know that they have a trust or a will. • Permanent record – it’s a permanent record of your meeting documenting everything that you talked about allowing you to revisit missed items. These ideas aren’t meant to pass judgment on your sales system that you are currently using – and if it works, that’s great. The more successful long-term agents use solution-based selling and I truly believe that is the only way that an insurance professional should operate.
It’s time to break the ice on the topic…
Presented by Donna Ries Even a short time spent talking today with your clients can help them avoid years of dealing with the consequences of hasty, sporadic decisions later on. We all age and most people end up needing help in some shape or form. Discussing possible scenarios with your clients won’t make them happen. Actually helping your clients prepare for their extended care planning will mean less work, stress, worry and regret later on for them and their family. Addressing tough topics now will allow your clients to enjoy their time ahead. One way to start the conversation is by stating that most people expect to live a long life, right? Ask your clients if they have thought about the impact this may have on their spouse, children, family or friends and if they are concerned about being a burden to them. The care many people may require later in life are costs often paid out of pocket. Even substantial savings can quickly be spent for extended care. Some questions to consider are where your clients would like to live and who can they rely on for help. The people they consider for help may be caregivers that live miles away. The extra burden for the caregivers could result in consequences for them such as missed work, lost wages, and exhaustion that will ultimately not allow them to care for the family member in need. Is it realistic to expect a spouse to care for their loved one? It’s time to make a plan now for your client’s long term care needs. Ask your LTC marketer about how to discuss with your clients a plan for the possibility of needing extended care. Discuss such topics as: – Helping your clients pay for care in the setting they prefer. – Thinking of LTC as anti-nursing home insurance. – Avoiding the risk of depleting a lifetime of savings with Partnership protected LTC policies. – Gaining peace of mind when extended care decisions need to be made. – Continuing to benefit from the life your clients have planned.
Health Care in Retirement
Presented by David Corwin In 2012, men reaching age 65 had an average additional life expectancy of 17.8 years, while woman reaching age 65 could expect to live an additional 20.4 years on average. While estimates vary, a couple retiring at age 65 without private health insurance from a former employer can expect to pay significant out-of-pocket health care costs during their retirement years. For example, estimates show that a 65-year-old couple who retired in 2013 needs about $220,000 to cover medical expenses throughout retirement, a 38% increase from the $160,000 first estimated for those retiring at age 65 in 2002. This estimate applies to retirees with traditional Medicare coverage and does not include costs of dental care, long-term care or over-the-counter medicines. About one-third of individuals that turned 65 in 2010 needed at least three months of nursing home care, 24% more than a year, and 9% more than five years. The national median daily rate in 2013 for a private room in a nursing home was $230, an increase of 3.6% from 2012. The average length of a nursing home stay is 835 days. At a median daily rate of $230, an average nursing home stay of 835 days currently costs over $192,000. With all those statistics in mind, the rising cost of health care in the United States has become one of the primary risks to a financially secure retirement. While lower (than in 2012), this year’s estimate is still daunting for many retirees, and it will consume a considerable amount of a couple’s retirement savings. It is extremely important that health care costs are factored into retirement savings strategies today so that retirees can be prepared to pay their medical bills throughout retirement. With health care costs expected to continue increasing faster than inflation, the time to plan for your future health care needs is now… before you retire. Your ability to enjoy a financially secure retirement can be enhanced by planning for future needs such as:- Long-Term Care Services • Are you familiar with the variety of long-term care services available? • If it becomes necessary, what type of long-term care services would you prefer? • How will you pay for any needed long-term care services?
- Advance Directives • Have you communicated your medical care wishes in the event you suffer a catastrophic medical event? • Have you named someone else, a spouse or family member, to make medical decisions for you in the event you are incapacitated?
- Paying for Health Care in Retirement • Do you know what your out-of-pocket health care costs might be after you retire? • Are you aware that Medicare, while it covers many health care costs, has significant limitations? • Are you familiar with the various types of insurance that can help pay health and long-term care costs not covered by Medicare?