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?”

Overcoming objections in a LTC sale

Presented by Tim Dreher

In my many years of working with Long Term Care insurance, I’m pretty confident that I’ve heard just about every objection there is to hear. Over the next several blog posts, I will focus on what I believe are the three most common objections.

The first objection: “I don’t need Long Term Care insurance. My family will take care of me.”

I’m sure that most people assume that their family will help take care of them should they find themselves in a long term care situation. In most cases their assumptions are probably correct, at least for a short time.

However, I’m also fairly sure that most people haven’t given much thought as to how a long term care situation can, and in most cases, does negatively affect the spouse, children, or other family members providing the care. You, as their advisor, need to discuss the potential physical, financial, and emotional toll that many caregivers suffer.

Over half of all caregivers today are the adult children of the care recipient with families, careers, and responsibilities of their own. I have seen caregivers put their careers on hold by taking time off from their job or even quit their job in order to take care of a spouse or parent. Studies have shown that the typical caregiver misses an average of 7 hours of work per week caring for a family member and last year, 77% of all working caregivers missed at least some work time.

Many caregivers themselves become sick due to the stress and exhaustion that can come with being a caregiver. Of caregivers surveyed, 43% felt that caring for a family member had negatively affected their emotional and physical health and well-being. Additionally, 55% said that they felt that they were not qualified to provide the necessary level of care needed. They also felt guilty about taking time away from their own spouse and children to be a caregiver to a parent or other family member.

Many caregivers also suffer financially when they find it necessary to dip into their own savings and or retirement funds to help pay for care, not to mention the lost wages for taking time away from work to provide care to a loved one.

Of course most people hope that their spouse, children, or other family member will help take care of them if they should find themselves in a long term care situation. It is your job, as their advisor, to show them that a Long Term Care insurance policy will help the family to take care of them better and longer, and without the extremely high levels of emotional, physical, and financial stress that many times go hand-in-hand when a family member needs care.