Selling LTC Face to Face?

[LostDollar]

Can't say if it is a "lead" product or not. Certainly there are agents where LTCi is their focus and primary product. I suspect any interest in the product is triggered emotionally. The individual, or someone close to them, is under care and going through money like a sieve.

There are far fewer carriers offering the product now. Prices are considerably higher. Underwriting can be tougher than in the past. The sales gestation time line is generally months, or longer.

On the other hand there is good residual income but it can take years to build up. Much longer than the Medicare market.

Could you consider fear of loosing assets to qualify for medicaid as another emotional trigger? And would that lead to any kind of a concept Dave could work into a mailer card?

 

[JD AgentMan]

I think using LTC as a lead product would be very difficult, but not impossible by any means. Average purchase ages are close to 60 years old now, there are much fewer carries in the traditional LTC space, decline rates are very high, and renewal rates are seeing increases often, some even by 50%. Because of this, hybrid products, or asset-based LTC products having been gaining popularity. These are life insurance with LTC riders, or annuities with LTC protection. Qualifications are easier to obtain during underwriting and the product covers multiple bases. Also, the rate is locked in as it is a life product, not a health insurance product at this point. Ultimately, it solves the issue of the prospect getting something out of it if never used for LTC. OneAmerica seems to be on the leading edge of this market with their product offerings. I believe this is easier to offer as part of a larger financial planning process with a client versus a single need approach. The goal would be to protect the assets of the client and afford them choice of care when the time come. This is often purchased by the middle-income market that has enough assets that they don't want to see it all go to the nursing home, but they don't have so much that they can self insure. Maybe this could be used as your lead product if you positioned yourself as a "specialist" that works with other advisors and insurance agents books that do not offer it themselves but see the value in it for their clients.

 

[LostDollar]

and renewal rates are seeing increases often, some even by 50%.

Is this on pre or post 2010 policies? I've been led to believe that pricing parameters have changed on LTCi products and post 2010 policy increases are much smaller.

 

[JD AgentMan]

Is this on pre or post 2010 policies? I've been led to believe that pricing parameters have changed on LTCi products and post 2010 policy increases are much smaller.

The last one I looked at for a client was over 10 years old, so I guess it was pre-2010. This was with one of the major carriers for LTC. Even with the large rate increase, the price was still better than getting something new at their current ages. This proves the point in the "cost of waiting" on this product. Earlier the better.

 

[LostDollar]

How do you suppose a T62 mailer would work?

Catch a lot of folks retiring early and maybe catch more folks before the sometimes age 62-67 health issues start in?

 

[Rob Lion]

I would think it is very rare. The average age went younger with LTC. Even a captive shop like Bankers Life focuses on different products now I believe. At least that is how it looks to me.

I just recently quit bankers, LTC was absurdly expensive and even if they could afford the product, once you added inflation protection it was way too expensive, and after all that mess they can't even qualify they said something about only 30% of people actually qualify. They shifted there focus to colonial Penn's overpriced med supps that I'm currently rewriting haha.

 

[somarco]

The agents I know that are actively working the LTCi market are targeting folks around 50 yrs of age.

Perhaps a "turning 50" pre-approach mailer might work . . .

 

[LostDollar]

I just recently quit bankers, LTC was absurdly expensive and even if they could afford the product, once you added inflation protection it was way too expensive, and after all that mess they can't even qualify they said something about only 30% of people actually qualify. They shifted there focus to colonial Penn's overpriced med supps that I'm currently rewriting haha.

When you run out of stuff to rewrite, here's an approach to LTCi which you may, or may not, have seen before. I think it makes LTCi another senior supplementary insurance product like Cancer, Dental, Critical Illness, MedSupp and so on.

Kansas Partnership for Long-Term Care

 

[JD AgentMan]

The agents I know that are actively working the LTCi market are targeting folks around 50 yrs of age.

Perhaps a "turning 50" pre-approach mailer might work . . .

I agree with this. You have to start younger with education and information. Seminars can work with this also. This can be done as a stand alone seminar, or part of a retirement planning seminar. You might even want to start with a seminar at a LTC facility for the families that have relatives there. These are the people that see firsthand how it works, or what happens when you don't have coverage. they might have a greater sense of urgency.

 

[Rob Lion]

The agents I know that are actively working the LTCi market are targeting folks around 50 yrs of age.

Perhaps a "turning 50" pre-approach mailer might work . . .

I've tried the turning 50 approach most of them can't afford the extra 100-400 dollars a month. But maybe I'm not aiming at people with enough money lol.