Open the Door to Small Business Sales

Selling Long-Term Care Insurance to small business owners is not like the emotional roller coaster sale it is when selling to individuals.

Business owners tend to look at this as a logical discussion of how you can help with their business finances.

Many are always looking for a way to save on taxes so a great way to open the door to an LTC sale would be, “If I could show you something that could help your business reduce its tax burden, would you be interested?”

All businesses can deduct LTC Insurance premiums paid using business dollars.  Depending on the tax structure of the business, the owner can either deduct the actual premium or eligible premium.

  • Owners of C corporations can deduct the actual premium paid on a LTC Insurance policy for the owner / employee, spouse, dependents and a designated class of employees.
  • Self employed business owners such as sole proprietors, partnerships or LLCs can deduct the eligible premium paid for the owner, spouse and dependents.  The eligible premium is established annually based on the medical care components of the Consumer Price Index.

This opportunity allows you to approach any type of small business because you are able to offer a money saving solution.  Be sure to approach small business owners with a plan that provides essential LTC coverage and allows them to take advantage of federal tax incentives.

For more information about selling LTC to small business owners contact your LTC Specialist today.

Dig Deep For Needs Before Presenting Solutions

When engaging prospective clients in Long-Term Care planning discussions, many financial professionals focus on asset protection at the expense of other valuable benefits that LTC Insurance provides.

Because LTC planning can be a very emotional process for people, it’s important to be cognizant of the various personal reasons why people buy LTC Insurance protection and to dig for those needs and concerns early in conversations with each client.

Doing so can enable you to better tailor your presentation to their specific needs and create a more efficient and effective sales process.

Here are a few process-driven tips:

THINK – Before you sit down with a potential client, consider the following question: Why do people purchase LTC Insurance?

A few of the most common reasons include:

  • to avoid burdening loved ones with care-giving roles
  • to have a choice of where they receive care
  • to maintain control over important care decisions
  • to remain in and receive care in their own home

ASK – During the fact-finding process, isolate your prospect’s most important reason for considering LTC Insurance.

Here are a few sample questions you can use to uncover the need:
  • “What is the primary reason that you are considering LTC Insurance?”
  • “If there comes a day where you need LTC Insurance, what is most important to you about the coverage?”
  • “Getting older, we all face questions about our care and independence.  What is your biggest concern should you ever need care?”

PRESENT – By uncovering the motivation behind your prospect’s consideration of a policy, you now have the ability to tailor your presentation to their specific need, focusing on the value of the policy.

By stressing the benefits of LTC Insurance, prospects will begin to see the policy as more than simply a premium they have to pay every month.

Did You Know?  Many carriers offer additional riders and support services to help ensure that your clients’ loved ones get the care they need.  Contact us for more information.

LTC: A Conversation Worth Having

Most of you know how to start the conversation about Long-Term Care planning with your clients, but are you making it a priority to actually have these discussions on a regular basis?

Consider this:

Consumers Are Acknowledging the Need

According to a recent survey conducted by one of our Strategic Carrier Providers, consumers have insightful thoughts on the importance of planning for Long-Term Care.

  • 85% agree that it is irresponsible not to plan, but they can’t bring themselves to address the issue.
  • 75% state they have so many other concerns, that addressing the risk for care is not a priority.
  • 60% agree that purchasing Long-Term Care Insurance is the best way to handle the cost of care.
Meet Their Needs

The national average cost for care in a nursing home is about $85,000 a year.  If costs increase at an average 4.1% a year,the average cost will be $286,000 a year in 20 years.  With this level of financial risk, the value of planning is clear.  You can help your clients by:

  • Quantifying the risk to your client’s assets
  • Providing plan options that enable them to insure some or all of the risk
  • Keeping their budget concerns top of mind
The Ball is in Your Court

Clients are open to having a discussion on Long-Term Care planning.  However, most people won’t address the issue without the intervention of a financial advisor.  It is important to educate your clients and demonstrate how LTC can be an appropriate solution to help protect their assets and their families.

Make it a priority in your practice, and show them how it fits as a priority in their overall financial plan.

Have Conversations

Understand that your clients may not bring up the need to plan for Long-Term Care on their own.  It’s up to you to help them secure their future and ensure they have the financial resources should they ever need care.

Take a proactive approach and have Long-Term Care planning discussions with your clients starting at age 50.

LTC Insurance: Because There’s No Place Like Home

Are you aware that 70% of people who reach age 65 will need Long-Term Care at some point during their lifetime?

While nursing homes and assisted living are popular, there is no place like home – 80% of all LTC is provided in the home, either at the home of the person receiving care or at the home of a family member.

Considering home is where the heart is, it’s important to highlight the flexibility that home care benefits provide.

Here are a few of the benefits included in most policies:
  • Home Modification
  • Home Safety Checks
  • Durable Medical Equipment
  • Provider Care Checks
  • Caregiver Training
  • Medical Alert Systems
  • Household Duties such as Laundry, Meal Preparation, and Bill Paying
  • Managing Medications
Some home care agencies will also include the following:
  • Social activities
  • Transportation to the Doctor’s Office
  • Report of Doctors office visits to family members

Emphasize these home care benefits and you’ll appeal to your clients’ desire to maintain their independence and quality of life, while increasing your potential for a successful sale.

For more information about home care please contact your LTC Specialist today!

Help Clients Hedge Their Risk

Highlighting the cost of care can be a powerful, yet non-threatening way to engage clients in a LTC planning discussion.  It also can provide a convenient starting point for designing a policy that will meet your client’s needs and budget.

Since the future estimated average cost for multiple years of care can be quite high, it’s important that both you and your client don’t view LTC Insurance coverage as an all-or-nothing proposition.

Highlight The Cost Of Care

First, discuss with your clients where they would like to receive care should a Long-Term Care event arise.  Based on their response, show them what the estimated cost of three or more years of care is today and in the future.

We can help you and your client explore the cost of care, including:

  • Current costs for Long-Term Care for all areas across the country
  • Estimated costs for LTC events lasting 1-10 years
  • Projected future costs for Long-Term Care based on inflation
Develop a Strategy

Once your clients have seen the financial impact that a long-term event can have on their assets, help them develop a strategy to insure some or all of the risk.  Base your plan design on what you know about your client’s financial goals, and adjust your recommendations based on their budget concerns.

Some clients may be willing to insure part of the risk by paying a portion of their future expenses out of pocket.  Others may prefer to protect all of their assets, to ensure a spouse/partner’s financial well being or to leave a legacy to their children.  In either case, LTC Insurance can provide a significant level of protection.

Manage the Premium

You have a surprising amount of flexibility when designing an LTC Insurance policy.  If you start with a policy that accounts for your client’s total estimated future cost of care, be sure to consider alternate plan designs that help to lower the premium, if needed.

Consider this approach:

If you started with a longer benefit period and compound inflation, consider shortening to 3-5 years to save money, while still providing ample coverage for most care needs.  Leaving off compound inflation protection can make a big impact, potentially cutting the premium in half.  With this strategy, consider a higher initial daily benefit to account for future cost of care increases.

Become a Resource

Become a “cost of care” expert in your community.  Leverage us as a point of reference in your prospecting efforts.  After seeing the potential impact that an LTC event can have on their assets, your clients may feel compelled to protect their future with LTC Insurance.

Contact your LTC Associate today for more information and resources.