Objection #1: “It's too expensive!”
Every major LTC insurer has raised rates. Some have done it to
their long-time policy owners. A few have exited the business. Most of
the remaining companies have raised rates by introducing new, more costly
products and removing their old ones from the market.
Today's higher premiums, coupled with today's higher costs of care, make
the “It's too expensive” objection even tougher to overcome. Your prospects
shouldn't buy a policy that they can't afford.
Here are some new ways to reduce costs without crippling coverage:
Sales Tips
- Steer clear of lifetime benefits. Lifetime benefits are expensive
because people see an unlimited pool of money to draw on for care services.
So they are quicker to file claims. Try a 10-year minimum benefit period
instead.
- Consider new inflation protection options. A leading LTC insurer offers
a 5%/3% inflation protection option. Monthly benefit limits still increase
by 5% every year, but the pool of money used to pay benefits grows at
3%. This can be a good cost saving option, when you consider the fact
that about half of the people in nursing homes are there for less than
one year. Other options with potential
cost savings:
- 5% compound with a two times cap
- 5% simple instead of compound
- guaranteed purchase options
(“pay as you go” inflation protection).
Objection #2: “I have to lose in order to win!”
How many times have you heard prospects say, “If I die without
needing long-term care, the insurance company keeps all my premiums. I
have to lose my good health, or lose my premiums.”
Sales Tips
Recommend MoneyGuard®.
MoneyGuard combines the benefits of life insurance with long-term care
coverage, so it always pays a benefit, even if the insured requires no
long-term care.
But MoneyGuard is often best suited for people who have enough rainy
day money to self-insure. Many people who need LTC coverage cannot afford
to own MoneyGuard. And MoneyGuard is not available in all states.
Here are two other solutions:
- Supplement a traditional LTC insurance
policy with life insurance. Recommend a death benefit that's
one or two times the expected lifetime LTC insurance premiums. Ask Delta
to quote a universal life insurance policy for
that purpose. You will be surprised at how affordable the additional
premiums can be. What's more, the full death benefit is paid, regardless
of the client's future need for long-term care.
- In states where it is available, consider MoneyGuard Flex. Unlike
single premium MoneyGuard, the client pays annual premiums to MoneyGuard
Flex. With optional extra cost inflation protection, Flex funding can
be a good choice for younger retirees and pre-retirees. Please remember,
though…MoneyGuard Flex does not provide a money back guarantee,
and certain versions of MoneyGuard Flex may not include the minimum
benefit guarantees.
Questions about long-term care insurance or MoneyGuard?
Call us! 800-441-DELTA (3358) or E-mail
us! quote@deltafin.com
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