2016 LTC Industry Facts to Help You Sell Policies

As any long term care insurance (LTCI) sales agent can attest to, selling this type of coverage to the market can be a struggle, particularly because of the premiums and price hikes that seem to be associated with the program. But don’t let that stop you selling – in fact, with medical advancements prolonging life spans, the need to have some form of care during the elder years is amplified, primarily for 70% of Americans aged 65 years and up (according to a study done by the U.S. Department of Health and Human Services).

Equip yourself with some of the latest facts on the long term care industry, in order for you to sell those plans. Read on:

Price Hikes

As mentioned above, LTC is an expensive – yet essential – investment. The rising value of care seems to have no end in sight, with costs only increasing each and every year. Suggest these tips to help your clients to take control of the premiums and price hikes:

Starting Early is a Smart Move – premiums scale with a policy holder’s age, so individuals who started early when applying are more likely to save up on payments. Just this year, it was also observed that more consumers from younger generations are purchasing policies – aside from the potential savings, younger people are also now exposed to the health issues that their parents and the elderly are facing, creating the sense of urgency for them (or their loved ones) to have access to coverage for the later years.

Consider Which Type of Care – policy holders have the option to choose from in-home care or applying for residency in nursing homes and care facilities. In-home care is generally cheaper than nursing home cares, but may lack the access or specialization when it comes to disease management, monitoring, or treatment. To give clients clearer ideas if their community or state provides care facilities and in-home support, point them to the U.S. Department of Health and Human Services’ Eldercare locator.

Shared Policies – always offer shared LTCI policies for clients with spouses or partners. This provides a more practical and flexible option to save up on funds while still receiving the proper benefits.

Price hikes will always be part of the selling process, but you can still be able to sell policies by emphasizing the benefits one can get from an investment.

Paying for Care

There are several ways to pay for long term care, but none may be available to provide the optimal care that insurance for LTC offers. Knowing the other options, however, can help you ascertain and provide the best pitch to allow your clients to consider applying for a policy. Here are some of the alternative methods:

Self-insure – otherwise known as out-of-pocket payments, individuals who opt for this option may find themselves chewing more than they can. Even with some savings set aside for the retirement years, long term care costs may reach up to $3,300 per month in assisted living or care facilities. Aside from the projected figure, estimates are too volatile, considering the unpredictable nature of expenses piling up especially when one figures in an accident or disease. Additionally, one also has to consider inflation – what may be a high amount now may not be the same case in the near future.

Medicaid – although this joint federal and state government medical aid program can pay for some LTC expenses, an individual must first qualify to receive benefits. And this means that the individual must first have limited funds and assets (as determined by the state the individual will receive the benefits at).

Medicare – another option that most mistook (and as a result, face frustrating consequences) to pay for their long term care support and assistance. Medicare only provides coverage for short term services – essentially for treatment or maintenance for conditions with an expected date of improvement such as physical therapies. Assistance for activities of daily living (such as bathing and eating) isn’t part of Medicare’s coverage.

Veterans Affairs – applicable only for individuals who have rendered service in the military. The Department of Veterans Affairs also assists eligible veterans on needs outside service-related conditions and disabilities, such as activities of daily living.

LTCI may be expensive, but let your client know the limitations that the other options bring to the plate. Premiums and price hikes aside, paying for solid coverage is practical as compared to paying hefty fees out-of-pocket.

Making the Most Out of CAP

An important fact to know this year is for the benefit of agents – did you know that your brokerage commission can give you the cash you may need to grow your mark in the industry? LTCI specialists can earn from a Commission Acceleration Program (CAP) that is provided by some agencies in the industry. LTC Global Inc., a marketing company that provides solutions for long term care insurance specialists and agents, has a flexible and effective CAP that can help sales professionals excel and earn in the field. The free renewal valuation in the CAP is partnered with the highest commission purchase rates in the county (which has a range of 15-25% greater than other companies with CAPs). Click this link for more information on getting the most out of your brokerage commission.

Selling LTCI may be a challenge, but the benefits far outnumber the risks. This is true for both clients and sales professionals – the former can have the peace of mind of receiving the proper care and assistance when they need it, the latter can gain high financial profit and assurance and respect for providing essential services for their clients. Good luck and hope you get to sell more.