Overcoming Objections in a LTC Sale

Presented by Tim Dreher

If you read my last two blogs (and I hope that you have) you’ll know that we’ve now come to the last of what I believe are the 3 most common objections in an LTC sale.

“I need to think about it.”

I’m sure that we’ve all heard this one a time or two. When I get this objection I know that it’s either a cost issue or I haven’t done a very good job of helping the prospect understand the importance and the value of purchasing an LTCi policy.

After some probing follow-up questions, I can usually get a pretty good idea of the reason for their hesitancy.

If it’s about the cost, I empathize with them and tell them that I understand that most people, myself included, have a budget and that initially, the cost of LTCi can be a little daunting. It is a big financial commitment for most people. Showing the premium cost relative to the cost of care can be a big help in easing concerns about premiums. If the reluctance is about them understanding the value of long term care insurance I then suggest that we go back and look at ways to build a comprehensive plan that will take care of any potential long term care needs and still fit within their budget. At the same time, I also remind them that the best time to put a plan in place is now. They will never be younger or healthier than they are today, and by putting it off, they take the chance that something negative could happen to their health. Then, unfortunately, no amount of money will get them a long-term care policy.

If the issue is that they still don’t fully understand how the policy works, I highlight the plan’s features, show them how the coverage works and emphasize how it would benefit them and take care of their needs should they ever find themselves needing care.

I remind them about the costs, both financially and emotionally, of finding themselves in a long term care situation without a plan in place.

Some of life’s decisions are just too important to ignore and putting it off will not make it go away.

“Now, if I’ve answered all of your questions, are you ready to get started with the application?”

4 Common Mistakes Your Clients May Be Making When Protecting Their Paycheck

Presented by Michelle Daharsh

When having a conversation about disability income protection with your clients, you will probably come across some common reasons stated as to why they don’t need it or want it. Most times when your client is asked about “disability insurance” they think it’s about getting hurt or injured. A better way to get their attention is asking them how long they could go without a paycheck. Below are four common reasons that your clients aren’t buying “paycheck protection” insurance – or Disability Income Insurance:

  1. It won’t happen to me because I plan to stay healthy. We all think and hope this. However, one in four 20 year olds will become disabled by the time they are age 67. (Social Security Administration, Fact Sheet, February 2013). How many of your clients will possibly fall into this statistic? In fact, illnesses account for approximately 90% of disability insurance claims…not accidents.
  2. Social Security will take care of me, right? It may, but will your clients qualify for benefits? How long will it take to get approved and how much will they receive? About 45% of individuals that apply for Social Security disability benefits are initially denied, and those who are approved receive an average of $1100 a month. Plus, it’s a process that can potentially take up to two years for approval before benefits begin. How long can your client wait for a paycheck and would this average benefit be enough?
  3. I have coverage through my Employer. Many times through employer plans, the benefits are taxed, policies are not portable, and they have maximum limits on benefits offered. This is a great opportunity where you can provide education on their actual benefits and truly uncover the additional income protection that you could provide them with an individual policy.
  4. I can rely on my savings. They probably can for a limited time, but have your clients really looked at their day-to-day living expenses and priorities and figured out how long their savings would last? About half of working Americans report that they couldn’t make it 30 days without a paycheck. Do your clients fit in this category? Can they make it a month, three months, a year – and if they have savings, is it really enough to cover them for an extended period of time.

Don’t let these mistakes cause a financial burden for your clients. Sit down with them and have the conversation about their need of “paycheck protection”, and how it can provide the protection needed for them and their family.