The “younger” segment of the LTC Insurance market (people age 45-55) represents a great opportunity to expand your business.
But to be successful, it’s critical to understand their unique needs and concerns around buying coverage.
Doing so can help you to anticipate and overcome objections, present solutions more effectively, and ultimately, create more positive outcomes. Here’s a helpful strategy to follow:
Know Your Audience
Individuals in the 45-55 age bracket often understand the need for LTC planning, but have not purchased a policy because of perceived affordability issues and/or competing priorities such as future college expenses, retirement planning, or caring for aging parents.
The majority of LTCi sales are to people under 55. Your biggest challenge is creating the sense of urgency for them to take action sooner rather than later.
When discussing LTC planning with younger prospects, you may hear:
- “I’m too young to deal with this right now.”
- “Currently, I’ve got other priorities to deal with.”
- “I can’t afford to add another bill to my monthly expenses.”
Respond Effectively: Before you can overcome an objection,it’s important to acknowledge a client’s concern and show empathy. This demonstrates that you are actively listening to their needs and concerns, which will help to build trust, and ultimately, enable the client to feel comfortable about moving forward.
Move Toward A Decision
Buying LTC Insurance is not an all-or-nothing proposition. You can take advantage of the flexibility you have to adjust the policy design. Show plan options with a premium that fits their budget. Here are two sample responses that address common objections:
Why Now Versus Later: “I hear what you are saying about your competing financial obligations and priorities. Since coverage is often much more affordable when you are relatively young and healthy, delaying this decision can make buying coverage even more challenging later. Let’s explore a few alternatives that might help us take advantage of your current age and health.”
Too Expensive: “I hear what you are saying about the monthly premium and your current budget. The most important thing is to have some level of coverage, so that you don’t ignore the risk altogether. Let’s look at some plan designs that still provide a strong level of protection, but better fit your current budget.”
Did You Know?
The average length of an LTC Insurance claim is 2.85 years. So when the premium cost is the biggest concern, look at different policy designs with a 3-year Benefit Period, which can provide ample and very affordable coverage for the majority of clients.
Contact your LTCi Associate for more resources and materials to help expand your LTCi business.