1 / 23

LTCI Partners

LTCI Partners. Objection Handling. Long Term Care is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117. For professional use only. Not for use with consumers. Agenda. Objection handling Understanding emotions – the root cause

zorana
Download Presentation

LTCI Partners

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. LTCI Partners Objection Handling Long Term Care is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117. For professional use only. Not for use with consumers.

  2. Agenda • Objection handling • Understanding emotions – the root cause • Understanding the Boomer’s perspective, and the need for a new approach • Common objections, and strategies for overcoming them • Anticipate – how to handle objections before they arise • Sales ideas and information • Making the most of premium dollars • CPI, Consumer Price Index • Prospecting opportunities

  3. Understanding Emotions • Most objections have an emotional root • Fear – “I might make the wrong decision” • Denial – “My kids will take care of me”, or “I take good care of myself and I will never need long-term care” • Overly optimistic – “I can afford to self-insure”

  4. Understanding Emotions • These emotions are enhanced by the unique nature of the LTC sale • The time, and premiums, between purchase and potential claim • People don’t want to lose their independence • Most people don’t understand what it is they’re insuring • Broker objections = Client objections

  5. Trends in LTC Insurance Marketing • Today, we are selling the value of long-term care insurance versus selling fear • LTC Insurance has become an estate planning tool • Message resonates with Boomers

  6. Trends in LTC Insurance Marketing • Purchase age has gone down (72 to 58) • Retirement equals increased activity The risk for LTC becomes greater when you consider the risk of an injury (chronic disability)

  7. Trends in LTC Insurance Marketing • Long Term Care • Nursing Homes • “It won’t happen to me.” • Chronic Disability • Interruption in life • Can happen at any age • Something that should be planned for Focus on the need to protect income and assets, or preserve the retirement plan, in the event of a chronic disability.

  8. Trends in LTC Insurance Marketing • Historically, securing your retirement meant • Systematic funding of a properly balanced portfolio over a sustained period of time • Management of Income Tax and Estate Tax exposure • Active financial risk management • Adequate life insurance planning • Proper wills, trusts and or medical directives But, there’s one critical component missing…

  9. Trends in LTC Insurance Marketing • Progressive estate planning should also incorporate • Risk management strategies that provide liquidity on a tax favored basis for chronic illness or disability Tax qualified LTC Insurance efficiently delivers tax free payments to help pay for LTC expenses

  10. Strategies for Common Objections What if I never use it? • Which is worse? • Buying a LTC Insurance policy and never using it? ~ or ~ • Not buying a LTC Insurance policy and needing care? • Which costs less?

  11. Buying LTC Insurance and never needing it… • 58-year old, Married • $5,000.00 per Month Benefit • 5-year Benefit Period • $300,000.00 initial Policy Limit • 90-day Elimination Period • 5% Compound Inflation • First Year Premium = $2,485.00

  12. Not buying LTC Insurance and needing care… • Year 1 Coverage • $5,000.00 per Month • $60,000.00 per Year • $300,000.00 Policy Limit • Year 20 Coverage • $12,635.00 per Month • $151,620.00 per Year • $758,100.00 Policy Limit How many months of care would it take to recoup the 20-years of paid premiums? Answer: Less than 4Months!

  13. Strategies for Common Concerns Which costs less? The cost of indecision may be far greater than the price of taking action. Which makes more sense?

  14. Strategies for Common Objections I can afford to self-insure… • One question, why give it away? • For wealthier clients: • More of a simple financial problem • Often concerned with long-duration events • Want to preserve retirement and legacy plans • What is this person really saying? • It’s more than expense reimbursement: • Care planning and expertise. Who ya gonna call? • Care advocacy for immediate family members

  15. How most people plan to manage their LTC risk LTC P o r t f o l i o

  16. How most people will manage their LTC risk

  17. Strategies for Common Objections My kids will take care of me… • Have you discussed this strategy with them? Perhaps we should get the kids involved. The children might help pay the premiums now to avoid paying the costs later. • Do you want your children to be your caregivers (mobility, dressing, bathing, etc)?

  18. Strategies for Common Objections I take good care of myself and I will never need long-term care. • Living an unhealthy lifestyle = risk of needing long-term care • Living a healthy lifestyle = risk of needing long-term care

  19. Strategies for Common Objections I’ll wait to buy until I’m older… • This is usually someone who doesn’t believe they’ll ever need help taking care of themselves. • If they truly believe LTC Insurance makes sense if they purchase at a later date: • The best time to buy is exactly 90-days before your Doctor tells you that you need care or that you have an uninsurable condition. When will that be?

  20. Strategies for Common Objections The premium is too expensive… • What are they really trying to say? • “This seems like a lot of money to spend on something I’m never going to need” • “I don’t have room in my budget to spend this much money on insurance” • “I really can’t afford this”

  21. Strategies for Common Objections The premium is too expensive… • “I don’t have room in my monthly budget” • Reallocate interest on savings. • If you have the assets, you will pay…eventually. Lets control the distribution of your resources, protect them in the process, and provide you with choices when it comes to your future care. • Some coverage is better than none. Show them just how affordable coverage can be!

  22. Anticipating future objections • Most objections are best handled before they arise • Learn about past experiences with parents or grandparents • Ask about their financial situation. Don’t be afraid to pre-qualify – financially. • Ironically, it’s easy to inquire about their plans in the event of death…use that to begin a discussion about their plans in the event of life. • What you learn at the beginning of the meeting is your most effective tool for handling objections.

  23. LTCI Partners Questions? Long Term Care is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117. For professional use only. Not for use with consumers.

More Related