Are you interpreting ?MAYBE? as ?NO?? According to the 2007 AHIP/LifePlans 15-Year Study of Long-Term Care Buyers & Non-Buyers 56% of non-buyers, people who considered purchasing long-term care insurance but didn?t, have not ruled out the possibility. This number represents a large percentage of many of the folks you?ve already spoken to about long-term care planning that have not purchased. Couple this with the finding that the vast majority of non-buyers underestimate the cost of care and we are presented with the opportunity to take another shot at educating new and old prospects on the risk they face, not just in today?s dollars, but in the future dollars they will need in their 80?s.
The AHIP/Life Plans study reinforces a theme that we have been hammering on for the last several years here at BJFIM/Paradigm; that non-buyers are looking for clear answers to questions they still have about long-term care and long-term care insurance. The fact that they underestimate actual and future costs coupled with confusion of how and under what conditions policies pay benefits perpetuates the notion that long-term care insurance costs to much. Consumers who understand the risk they face purchase and keep their policies in record numbers. This means that we need to redouble our efforts to communicate the actual facts in new, better and simpler ways.
Factors that would make non-buyers more interested in purchasing long-term care insurance include government programs that would extend payment for care beyond the policy limits. We call these Partnership Plans and they are available right now in California. The concern that premiums may go up in the future also troubles non-buyers. While non-cancellable products do not currently exist, the rate stabilization regimen in place in most states, and particularly in California, provides consumers with the assurance that companies are pricing their products responsibly and that the regulators are looking over their shoulder. Finally, above the line tax deductibility and the ability to use qualified plan funds for premium payment without tax or penalty would go a long way towards moving non-buyers to ?YES? . Talk to your Federal and State legislators about this issue. If they truly want a free market private enterprise solution to our looming long-term care crisis, encouraging people to take personal responsibility for their own needs through tax incentives would, in the long run, be the most cost-effective to get consumers to do so.
Educating the public about their need for long-term care insurance is the key. LTCi premiums are not a ?throw-away? so people must understand what you are asking them to pay for. BJFIM/Paradigm can help you with your efforts in this regard. Susan has created a series of direct marketing letters for existing prospects and clients who have already said ?no? or ?maybe? to long-term care insurance as well as a number of letters to those who may be new to the topic. If you are interested in using them, email Susan today atsusanb@paradigmins.com.
Finally, your client?s education starts with your own! We have scheduled our Q1 LTC-2004 and California Partnership 8-hour certification classes. Both Sandi Miley and I are updating our respective courses to bring you the latest in long-term care ideas, thoughts and technologies. Click on the ?classes & webinar? link at the top of this page to get the details. Space is limited so register today.