A Fresh View On The LTC Insurance MarketJulie Brooks
Learning how to adjust to the changing market is crucial to the continued success of your LTC Insurance business.
Today’s market reflects an expanding, diverse clientele, so being able to respond to their unique needs and budget constraints is critical. The first step is to understand their concerns around buying coverage, including potential objections about the cost of a policy.
Adapting your approach to the new market will not only demonstrate that you are responding to changing trends, but will ultimately help to increase your LTC Insurance business.
3 important concepts to consider:
Who Should I Target?
The “younger” segment of the LTC Insurance market includes 45-55 year olds. And while they may understand the need for LTC Insurance, many have competing financial responsibilities, and feel they don’t have the disposable income to spend on a policy. Your challenge is to create a sense of urgency about the importance of applying when they are younger and healthy, and show them there are affordable ways to access LTC Insurance coverage.
How Can I Help My Clients?
Your clients may not know that they have a surprising amount of flexibility when designing LTC Insurance coverage. Buying a policy is not an all-or-nothing proposition. If you start with a policy design that addresses 100% of your clients’ anticipated future care needs, you can offer alternate designs to help lower the premium, if necessary.
For example, suggest shortening the Benefit Period to 3-5 years to save money, while providing ample coverage for most care needs. Leaving off compound inflation protection can also make a big impact, potentially cutting the premium in half. With this strategy, consider other alternatives for inflation protection or a higher initial Daily Benefit to account for future cost of care.
What Can I Do To Succeed?
One of the characteristics of the new market is that the public is more aware of the need to plan ahead for LTC. They are open to having Long Term Care planning discussions, and will welcome your guidance. Take a proactive approach and make it a priority in your practice to initiate LTC planning discussions with your clients by age 50.
By connecting with your clients, emphasizing the value of LTC Insurance protection, and showing that coverage can be adjusted to meet their budget, you will demonstrate that you have their personal needs in mind and are on top of the latest product offerings. And, that is a recipe for success for years to come.
Contact Insurance Advisors today for more resources and information.