First I want to thank those of you who joined us on April 29^th for our Prudential Long-Term Care Insurance Summit.  More than 110 agents joined us to learn how easy it is to successfully reach the pinnacle of long-term care insurance sales success with simplified sales concepts and easy to issue multi-life products. It was great seeing many old friends and meeting new ones. The staff and I appreciate you taking the time to join us and we look forward to continuing to work with you; now onto my topic of the day.

In the May issue of California Broker, the cover story and related article are all about “group” long-term care insurance.  I certainly can agree with the author that employer sponsored long-term care insurance has a tremendous potential.  As you know, we’ve been talking about it for several years now, and as many of you can attest, sales in this arena are increasing monthly.  Some of the advice provided in the article actually has some value, particularly as it relates to the types of employer groups to target and the employee education necessary to successfully implement a plan. 

But as my April 3^rd blog posting (sorry, I took a bit of a break) points out, pigeonholing employer sponsored LTCi as a 15+ “group” offering limits the agent’s thinking and marketplace.  And, as earlier postings reveal, group products, particularly in the small employer setting, are not necessarily the best for consumers and clearly aren’t in the agent’s benefit either.  The fact is that the May California Broker article continues the misconception that employer sponsored long-term care insurance is just a “group” sale. 

There are a vast of wealth of employer groups with less than 15 employees; very successful companies with highly compensated owners and key personnel.  The same sorts of companies listed in the California Broker article; consulting firms, doctors’ groups, law firms, engineer architects, financial firms and software professionals.  The author of this article ignores highly profitable employer groups, owned by Baby Boomer entrepreneurs, looking to protect their retirement savings and income and would relish the opportunity to let the government pay a good portion of the premium through the simple wonders of tax deductibility.

The key is three! An employer group with three or more participating employees can purchase high quality individual long-term care insurance products, from two of the best LTCi carriers in the industry (A+ rated) using modified criteria that eliminates 90% of the underwriting hassles inherent in individual long-term care insurance.  If the covered employees can answer “NO” to a short list of simple underwriting questions the policies are issued; no attending physician statement, no phone interview; it makes long-term care insurance easier than ever.  What’s more, one company will offer simplified underwriting to spouses with ten covered lives.  This can be five employees and five spouses.

Do all of the employees need to be offered the same levels of coverage?  No, Mr. Big can qualify for a generous benefit package and provide low cost core benefits to two other folks in the firm.  And both of our multi-life carriers offer an employer sponsored discount that makes their competitive pricing even more attractive.

How much better are individual long-term care insurance products than group?  As I’ve written in the past, individual products are owned by each insured, therefore, if they leave their employer, portability is not an issue.  If the insured chooses to continue paying the premiums the policy is theirs.  Also, individual policies are likely to be more rate stable than group products.  And lest you think group LTCi premiums are less than individual, think again! In many cases, particularly after age 50, individual premiums are less than group. 

And you, the agent, make out much better with multi-life long-term care insurance. Individual first year commissions are three to four times that of group and renewals and service fees are fully vested.  No other agent can come in the back door and take customers away from you. Both you and your clients win big with individual multi-life long-term care insurance.

There is a place for true group long-term care insurance but it is rarely the call for smaller employer groups, particularly those under 250 employees.  Look to multi-life long-term care insurance before you make the move to group.

Please reply to my Blog by clicking on “comments” below or by writing me directly at barry@paradigmins.com.

While I do believe that the best days of long-term care insurance sales success are in sight, I look back on the period between 1997 and 2003 as a Golden Age in the sense that LTCi came out of the senior supplement shadows and the corporate carve-out sale burst onto the...

One of our most loquacious brokers, Steve, came into the office to order some proposals and pick-up some applications.  He related this double-barreled epiphany to me.

I have been getting many calls from agents about the CNA Class Action “Legal Notice”.  Before I get to that, however, I want to bring you up to speed on a another matter of some importance.

This will be a short posting because I want you to go to our program information (Click Here).  We are now able to take your reservations for one of our most exciting and informative continuing education and sales training meetings yet.  On April 29^th, By: Barry J. Fisher, CSA, LTCP | @ 03/07/08 11:05 am | Comments: [0]

I appreciate the concerns that many consumers and agents have regarding future rate increases on the long-term care insurance policies that we are selling today.  Much of this has been fueled by anecdotal press coverage that focuses on policies that were offered prior to very stringent rate stabilization...

In May 2006 California Broker published an article that I co-authored with a colleague who specializes in disability income protection coverage. The premise of the article was that as clients get older their DI policies lose most of their value and that serious consideration should be given to replacing...

When I speak with agents regarding their struggles with long-term care insurance sales success, individual or multi-life, the tried and true consumer objections regarding cost generally arise:

The U.S. Government Accountability Office (GA0) is our nation’s fiscal watch dog.  Congress expects this agency to help it meet its “constitutional responsibilities”.  At least that’s what it says on their website.  GAO seems to be...

Top agents, just like great athletes, hone their skills, learn faster and better ways to play their positions and discover new tricks along the way.  Consumers demand this. Doesn’t it make you feel great when a prospect tells you that your explanation of an obtuse insurance concept makes sense to...

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. ...

The other day I got one of those cutesy emails filled with amusing “children say the darndest things” stories.  Here’s how this one went:

Welcome to my 2008 series of Blogs and a hearty Happy New Year.  Susan, the staff and I all hope that you had a great holiday season and now we’re looking forward to working with you in 2008.  In a long-term care insurance world where brokerage general...

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. 

By: Barry J. Fisher, CSA, LTCP | @ 12/11/07 06:56 pm | Comments: [0]

AARP recently reported an unimaginable dearth of understanding when it comes to what American Baby Boomers don’t understand about long-term care?  In fact, many think that either they have coverage when they don’t or that the government will take care of them.  Allow me to...

A number of you have asked me to comment on Jeff Opdyke’s rather non-helpful article in the November 14^th Wall Street Journal.  Non-helpful primarily because he missed an opportunity to provide meaningful information to consumers who, in fact, want and need relevant advice.  It should...

A great many of you have emailed me regarding today’s article in today’s Wall Street Journal by Jeff D. Opdyke, pertaining to review and replacement of existing long-term care insurance programs that you’ve been selling for the past few years.  I...

Odds are that your clients and prospects own a 401(k), IRA plan or participate in an employer provided pension plan.  Why else would 68% of Boomers and 77% of Gen X and Y generation adults expect that the biggest source of their retirement income will come from their employer...

Here is a wonderful story that Susan sent my way this morning.  It was written by Pulitzer Prize winner (1997) Michael Gartner.

By: Barry J. Fisher, CSA, LTCP | @ 11/09/07 01:52 pm | Comments: [1]

Some have taken our multi-life (group) long-term care insurance message to heart and we greatly appreciate all of the proposal requests you’ve sent us since our meetings in September.  Many others, however, are either waiting for a special invitation or are so worried that they don’t know everything there...