When prospective clients tell you they don’t want or need long-term care insurance because they plan to pay the cost of services themselves, here’s an easy way to get them to rethink their position.
Simply ask, “Which asset have you set aside to pay for your long-term care expenses?”
This question helps people realize they really don’t want to tap into an asset that’s been set aside to fund their retirement or their kids’ inheritance. Once you have them thinking about the reality of having to liquidate assets to pay for care, it’s time to talk about the cost. Liquidating assets may trigger penalties and tax consequences in addition to the loss of future earning the asset generated.
Now, compare that cost with the cost of a long-term care insurance premium. Generally, your clients will agree that long-term care insurance is a better alternative.
So get your clients to talk about which assets they would liquidate to pay the cost of long-term care services. Chances are those assets already have been allocated for something else.