On July 1, the Wall Street Journal published another shock article on Long Term Care Insurance entitled “Long-Term Care Insurance Gap Hits Seniors”. In this piece, they rehashed a lot of old news – carriers exiting the market, and rate increases on older blocks of business.
This article paints a very skewed picture to consumers looking to solve their LTC problem. We believe there are 5 simple ways for all advisors to better communicate the full story on long term care planning to their clients:
- Understand the real reasons behind the rate actions, and be able to explain these to your clients in a way that assures them of more stable pricing in the future. Deb Newman did a great job explaining the lapse assumptions and underwriting issues in our recent State of the LTCI Industry call. Click here to listen to a replay of the call online. (Running time = 43 minutes).
- Share the wisdom of well-known consumer advocates who understand the need and value of LTCI. Features writers and columnists make their livings on the “if it bleeds it leads” reporting of negative news. Instead, why not piggyback on the positive consumer messages shared by some of the nation’s most well-known names? Take advantage of third party endorsements for LTCI from names people know and trust:
Dave Ramsey: In a July 5th advice column, Ramsey states that LTCI is “a smart buy, and you’ll get a great return on the investment.” He goes on to say “I believe in having this type of coverage, even if you can afford to pay for care out of pocket.” Click here for the article.
Suze Orman on her $25,000 a month mistake: “If you can afford LTC insurance and you are in your early 50s or older, now is the time to look into getting it.” In the Chicago Sun-Times, Orman discusses one of her biggest financial blunders – not buying LTCI for her mother. Click here for the article, and here for a video where Suze discusses this mistake.
Terry Savage: For years, Savage has urged readers to “consider long-term care insurance now”. Earlier this year, she shared the news of gender-based pricing and stated: “despite the recent bad publicity about rising premiums, you might want to check into buying a policy now. Especially if you’re a woman.” Click here for that article.
3. Understand how the claims process works and how built-in benefits like care coordination services make a difference in peoples’ lives. In our July conference all series, we explain in layman’s terms how an LTCI claims process works. We also discuss Care Coordination, and how to communicate the value of one of the most overlooked, yet most important, benefits in most policies. Click here for more information on our July call series and to RSVP for a webinar.
4. Share the message that LTC Insurance PAYS! Every single day, more than a quarter million people are receiving benefits from their policies. In 2012, over $6.6 Billion was paid out. Click here for the most recent industry data on the claims paid by the major insurers. Genworth, for one, pays out more than $4.3 million in claims every single day.
5. Use proactive messages to educate your clients on the need to plan ahead. The best ways to counter negative news isn’t to stick your head in the sand and ignore it. Being proactive in your messaging to clients about the need to plan ahead for their future care needs means you are in control of the conversation.
Our Monthly Marketing Tools will help you have new and fresh conversations that you can share with your clients. Click here for a sample from our July toolkit.
Join us for a webinar on July 23 to learn how to best position LTCI conversations with your clients. Genworth’s Best Practices for Sales and Marketing will give you more ideas on having planning discussions with your clients. Click here to for more details and to register.
Doing any of these five things will help you to better reach your clients with the messages on the need for LTCI, a simple understanding of how it works, and examples of how it helps people when they need it most!