LTC for the Super Wealthy?

[Arthur Rudnick]

She dosen't need to tell me, she needs to speak up as a member of the webinar and tell the audience. I'll have her repeat the story so everyone hears.

I'll even vist her mother in Costa Rica.

 

[billberry12]

Do the people insure their homes, cars, toys, estates, jets, health, lives and whatever else they own and cherish? If so, then why?? Why not self insure for those things? Why would a LTC risk not be insured when all these other things are? Can someone in this group answer that question? I would like to hear the answer. Very puzzling isn't it?

 

[Arthur Rudnick]

I'll answer that in one word.......


DENIAL​

 

[billberry12]

Yep. That's always the problem. Everything else is a cover up. And you know what: after 11 years of doing this, I still have not come up with a way to overcome denial, except walking away. I just walk away sooner and faster the older I get. How do you handle denial? Anyone?

 

[Arthur Rudnick]

"I have not come up with a way to overcome denial, except walking away. I just walk away sooner and faster the older I get. How do you handle denial?"


Just like you, I walk away as well. I gave up getting into pissing contests with prospects a long time ago.

 

[billberry12]

I guess with age comes wisdom Arthur. I walk away from lots of things that I wouldn't have dreamed of a few years ago. You can't fight ignorance can you?

Good luck with your presentation, and be sure and post back a blow by blow recap afterwards. When is it?
Bill

 

[Arthur Rudnick]

mid-sept........

 

[scagnt83]

The reason why the wealthy like MG type products is because they can still "see" that as an "asset" if the need arises.

I am not saying that they are right or wrong, but its how they look at things and how they think about their money.

With the LTCI, what once was an asset is no more, its insurance.

With MG, their money is still there, if the need arises they can still access it.
And while its silly, they like it because they see their $ "asset" right there on the illustration, and not only that but it at least grows at a modest amount.

They see it as "self insuring" still, but leveraging their money to do so.
And it is to an extent.

If they are 90 and still dont need LTC but need $, they are not up a creek.

Sure they can buy a higher LTC benefit with LTCI, or a higher DB with a GUL.
But those premiums are money that is now "unusable" if the need ever arises.

To them, its not about getting the most benefit per dollar; its about re-positioning and leveraging an asset to hedge risk, all while keeping that asset "usable" if need be and still a true "asset".


The wealthy dont necessarily need to maximize the benefit per dollar. Most MG premiums are from "extra" or "just in case" assets that are usually in CDs or something very conservative, so the prospect does not plan for that money to be maximized in the first place; its a safety net.

This is how they think and why the product appeals to them.


The newer LTC riders coming out on GULs are looking more and more attractive though.

How is the underwriting on the one from Protective?
Are LTC benefits taxable when received? Or is it an advancement of the DB?
How large a benefit can you get?
- - - - - - - - - - - - - - - - - -
And the best way to sell LTCI to the wealthy is to position it as an asset in their minds. Show them the economic value of it.

But the problem you have to get around is them saying "its only an asset if I end up needing care..."

 

[bluemarlin08]

I have MUCH more success with the wealthy than any others. My clients seem to "get it" and understand the advantages of LTCi. Plus they never lapse, easy sale in most incidents.

 

[Mr_Ed]

I have MUCH more success with the wealthy than any others. My clients seem to "get it" and understand the advantages of LTCi. Plus they never lapse, easy sale in most incidents.

ditto.

most of the people i know who've purchased the mg product aren't what I would call "wealthy".

they are usually single women in their sixties, with less than a half million in liquid assets and they put, on average, about 50k into the mg product.