For many years I have seen evidence that supports the notion that agents that consistently discuss long-term care planning with their clients sell more long-term care insurance. However, many don’t as they lack the knowledge and confidence to begin the conversation about this risk; they only field questions defensively and rarely make the sale. Others, particularly financial advisors and life insurance agents working with high net worth clients ($5,000,000+), adhere to the notion that their clients can self-insure the risk or invest their way out of the problem. The sad fact remains that most agents live in their product specialty “silos” and or their misguided notions and rarely venture past their comfort zones.
Where does this leave the typical consumer? Ill served at best. In the dark with an uncovered insurance risk at worst. The smart planner will search out the information and broker that can help them but the simple truth remains that most don’t. They either don’t understand or don’t know the problems that are headed their way.
There is a confluence between my assertions above. Many agents and most consumers are unaware of the expanding world of long-term care planning and insurance solutions that now exist. Traditional long-term care insurance is no longer the only choice. Brokers that focus on life insurance or annuities can now offer products with the advantage of long-term care coverage. And traditional long-term care insurance agents may begin losing sales to their more nimble competition if they don’t move their game to a higher level. The full implementation of the Pension Protection Act of 2006 means that financial and insurance professionals of all stripes are now playing in each other’s sandbox. Either they will become fluent in how all of the various planning tools fit consumer’s needs or they will begin to lose sales, get sued by disgruntled clients and heirs or both. Which category do you want to find yourself in?
It is because of this growth of new product types that we at BJFIM/Paradigm are changing our focus from long-term care “insurance” to long-term care “planning”. Yes, we still make our living by helping you market and sell insurance products that indemnify against the long-term care risk. But now the solution may include a life or annuity combo, traditional long-term care insurance or all three. Sales will be won by those agents who can appropriately discuss the long-term care risk, help clients understand that planning for it makes sense and recommending the proper insurance solutions.
So does this mean that you’ll have to learn about new products and techniques that will help you assist your prospects and clients? Afraid so. I’ve been at it for more than a year and our staff has as well. And now that the provisions of the Pension Protection Act are fully in play insurance carriers are bringing new products online every month. 1035 Exchange opportunities will abound. Consumers will soon learn that they can use latent cash values in existing life or annuity products to provide themselves with life, retirement and long-term care security. These folks will represent the low-hanging fruit for the agile agent. The question is, will you be the on the receiving or short end of the exchange process?
As always our plan is to make it easy for you to succeed in all things involved in long-term care planning. That’s why on March 11, 2010 we will be hosting a seminar that will help you become a master of this new world. Join us for Links To Long-Term Care Planning Success, a day complete with product, marketing and sales ideas, continuing education credits and a whole lot more. You won’t want to miss this opportunity to meet with our entire staff and our friends from Genworth Financial an industry leader in traditional and linked long-term care insurance products and planning.
Take advantage of our early bird tuition and don’t forget, space is limited. Our meeting in October sold out so you want to reserve your seat today. Click Here to get a complete program guide and register today! We look forward to seeing you on March 11.
As always, Barry, you are ahead of the curve.
What a smart, smart man you are.
Carolyn Shelby