Cross Selling Long-Term Care Insurance

There are numerous people you know that need Long-Term Care (LTC) Insurance, many of them include your current clients.  Perhaps you have already sold them a Life Insurance Policy, yet how do you get them interested in LTC?

Cross Selling can be difficult, yet when you present your client with information about LTC, they should understand the benefit of protecting themselves when they may need it.

Begin by talking about the consequences of living a long life will have on their family – and offer to put together a plan to protect them from the biggest risk they face after retirement – one that must be protected with Long-Term Care Insurance.

Once the conversation is going, a few good questions to ask include:
  • What percentage of your retirement assets have you set aside to pay for Long-Term Care services?
  • Are you concerned about the impact a chronic illness would have on your retirement savings?
  • If it were necessary to increase your spending by $3,000 or $4,000 a month to pay for LTC services, would that concern you?

To learn more about incorporating Long-Term Care into your product portfolio, or if you need more prospecting tips, contact your LTC Specialist today!

Home Is Where The Heart (And Sale) Is

When you approach clients about Long-Term Care Insurance (LTCi), be sure to ask where and how they would like to receive care should the need arise some day.  Chances are, they’ll want to stay at home.

65% of long-term care is provided in the home – either in the home of the person receiving care or at a family member’s home.

Many people visualize long-term care as uprooting to a nursing facility – but plans allow for 100% of the benefits to be paid at home, allowing clients to stay with loved ones in an environment they’re used to.

Highlight the home care benefits that are automatically included in the coverage

Doing so is a smart and effective way to show you are listening and are able to provide solutions that fit their needs.

If your clients are like most people, they find it hard to imagine moving out of the comfort of their own house for help with daily living activities like bathing, getting dressed, and eating.  By emphasizing these at-home benefits, you’ll appeal to your clients’ desire to maintain their independence and quality of life, while increasing your potential for a successful sale.

We’re here to help you design a plan that is both affordable and the best solution for your clients’ needs – contact your LTCi Sales Rep for guidance.

4 Ways LTC Insurance Provides Tax Advantages

When meeting with clients to discuss the benefit that a Long-Term Care (LTC) Insurance policy has on their overall financial plan, tax deductions might not be the first thing you emphasize, but should be one of your top five discussion points.

Taking the time to explain the tax advantages may provide the tipping point for clients who are hesitant about purchasing a policy.

Here are a few scenarios on how to approach each type of client:

The Client On The Fence

Many states offer a deduction or credit on paid LTC Insurance premiums, which can make purchasing coverage more attractive to your clients.  For example, in the state of Ohio, residents are able to deduct the entire annual premium for their LTCI policies on their tax returns.

The Planner

If you are working with clients on their tax strategy, consider turning their tax refund into an LTC Insurance premium payment.  It’s a great way to plan for the cost of the insurance and can make annual premium payments a non-event.

Business Owners

When a C-Corporation purchases a policy on behalf of its employees, and their spouses or dependents, the corporation is entitled to take 100% deduction as a business expense on the total premiums paid.  If self-employed, clients can deduct 100% of their out-of-pocket LTC premiums up to the age-based Eligible Premium amounts*.

Current Policyholders

Clients who already have an LTC Insurance policy may not know about the tax deductions available to them.  So during your annual review, be sure to educate them about a missed opportunity to take a tax deduction.

Contact your Long-Term Care Specialist today to learn more about the tax advantages of LTC Insurance.

One Sale, Double The Coverage

Looking for a life-based long-term care product that can cover two people under one policy?  Sometimes clients are unsure whether or not they need protection – and may want to cover their spouse instead.

Kill two birds with one stone with a joint life product, which not only protects your client and his/her spouse, but also uses the same funds to do so.

This product offers the ultimate level of flexibility – it allows your clients access to a shared pool of long-term care benefits stemming from one premium payment.  In addition, the second-to-die whole life structure creates a larger pool of shared benefits than they would otherwise have from a single life policy.

And for your single clients, the policy can be structured for two family members instead – assuming they do not have an age gap of more than 25 years.

Compare your options:

Example clients Jim and Bonnie are married, both age 65, and in good health.
Jim
$100,000 total
single premium
Jim and Bonnie
$200,000 total
single premium
Bonnie
$100,000 total
single premium
Benefit period:
Lifetime
Monthly LTC benefit:
$4,279
Death benefit:
$106,984
Benefit period:
Lifetime
Monthly LTC benefit:
$7,406
Death benefit:
$246,891
Benefit period:
Lifetime
Monthly LTC benefit:
$3,927
Death benefit:
$130,908

Other benefits include reduced cost of insurance charges and underwriting flexibility.

To learn more about the life-based long term care product and additional products being offered in the asset-based LTCi marketplace, contact your LTCi Sales Rep today.

Long-Term Care: The Cost Of Waiting

Your clients often think they will not be among the 75% of people who need Long-Term Care sometime in their life.  They put it off thinking they don’t need to purchase protection until it actually happens to them.

Unfortunately, waiting to purchase coverage could mean they pay higher premiums or they could even be denied coverage.

Time vs Cost

The two most important factors that determine the cost of an LTC Insurance policy are the age and health of the applicant.  That’s why it is important for you to remind your clients to start planning early while they are young, healthy and able to take advantage of more favorable rates and discounts.

Show your clients the difference in cost and explain to them that waiting even five years to purchase coverage could mean higher premiums, additional underwriting and a decreased opportunity to qualify for preferred rates.

For more information on approaching your clients about Long-Term Care contact your LTC Specialist today.