At the risk of being politically incorrect, Happy Hanukah to my fellow members of the Tribe and Merry Christmas and Happy New Year to one and all.
You may or may not have noticed that I had taken a bit of a hiatus from my Blog. Some of you may consider this an early holiday gift but the fact is that reporting on new developments in long-term care and long-term care insurance and spinning sales ideas into something that might spark your interest, action and reaction is exhausting. I?d like you to know that when you see these short gaps in Blog activity don?t take it personally or imagine that I?ve quit or given-up. When I write a post I want it to be helpful, informative and something that will assist you in your efforts to get the point across to your prospects and clients.
I believe that 2007 has been a positive yet transitional year for long-term care insurance. Industry wide sales have stabilized and the media buzz about the need for LTCi has been generally constructive. From a product perspective, we have an outstanding choice of quality policies from companies that appear committed to the market and message. Word on the street is that more carriers are considering joining the effort in the coming year or so which is good for agents and consumers. Fire sales are also over for the foreseeable future which means that we need to get back to discussing long-term care within the context of retirement and business insurance planning. There?s no magic here; we have to present the risk and talk about solutions. It?s a tough job but someone has to do it.
Generally when I speak to consumers they now have a broad idea of what long-term care insurance is and the sorts of services that it pays for. Many are bewildered partly because so many articles tell them that the products are confusing and many agents are still not comfortable with the simplified sales approaches that we have pioneered and developed. Some Baby-Boomers think that long-term care is covered by their medical insurance and still others continue to deny that they have a problem or will need it at all. Other priorities also get in the way; private school and college tuition costs along with other financial obligations can take the oxygen out of any discussion pertaining to something as mundane as long-term care insurance.
The ?Chicken Little? political and media hum and strum about our ?struggling economy? and a ?pending? recession has created a sky is falling mentality. The decrease in real estate values, while only on paper for most folks, makes homeowners feel poorer and less willing to make a commitment to a long-term care insurance premium. Unfortunately, many have used their home equity to pay for their kid?s college, buy a vacation home or whatnot. This negativity is likely to pass but the need for long-term care insurance protection won’t. In fact, it will be greater, it will be harder to qualify and the cost will be higher.
If all of these reasons not to purchase sound familiar to you there?s an explanation. They are the same excuses folks have been making for as long as I can remember for not hedging their financial risks with any number of insurance products. I could complete the list with any of the following; (1) it?s the holidays; (2) it?s just after the holidays; (3) it?s tax time; (4) I just paid my taxes; (5) I?m going on vacation; (6) I just got back from vacation. I think you catch my drift; it?s never a good time to buy insurance and that?s why they call what we do selling!
Today I had lunch with a young agent who just went off on her own. Ann (not her real name) sells medical insurance primarily and many times to clients of agents and financial planners who don?t have the time or inclination to do it themselves. Ann just submitted her first long-term care insurance case to us. How has she integrated LTCi into her routine? She systematically talks about long-term care insurance each and every time she sees someone. She also preaches the gospel of discounted dollars to her centers of influence many of whom start off believing that their clients can and should self-insure the risk. Ann?s first sale has a five figure premium and I know it won?t be her one and only. You see, she takes no prisoners and ?no? only lasts until the next time she discusses the risk that her clients face or until the “no” becomes “yes”, whichever comes first.
So if the holidays are keeping your client?s from buying long-term care insurance suggest that they put a policy next to the Menorah or under the Christmas tree with their kid?s names on it. It could be the most valuable gift that they ever provide their children, because after all, they didn?t spend $150,000 for that Harvard education so that their kids can change their diapers 30-years from now! And don?t forget the gift of tax deductibility that the IRS provides business owners for purchasing long-term care insurance. This can save your clients thousands of dollars when the tax man cometh in April.
While this will not be my last post of the year my staff and I would like to thank you for your business and friendship. Working with you to make long-term care insurance an everyday part of your insurance practice is part of our mission and we appreciate your efforts.