Your Guide to Selling Long-Term Care Solutions

The American population is in the midst of significant aging. It’s estimated that in the next 20 years, the number of people who are 65 and older will increase by nearly 50%, reaching 80 million people by 2040.  

What’s more, those aged 80 or older will more than double in that timeframe, from 7 million in 2020 to an estimated 15 million by 2040, according to a report from the Urban Institute. 

This cohort of the population will require services and care that often aren’t covered by insurance, making long-term care insurance an attractive option for an increasing number of people. This gives independent insurance agents an excellent opportunity to add another product to their repertoire to help support their clients. 

If you’ve never sold long-term care solutions before, follow this guide below to help you get started. 

Start Having Conversations 

Independent insurance agents should start having conversations with all of their clients about long-term care insurance now, whether those clients are close to the age where they’d use the services or not. That’s because selling this type of insurance can take years. 

That’s because long-term care solutions often aren’t needed immediately by clients. Plus, it’s not something many people think about on a daily basis. 

By starting to have conversations now with your clients, you can plant a seed that you can nurture and grow over time. In many ways, this will help you serve as a care advisor to them, rather than just an insurance salesperson. 

Educate Your Clients 

Education is a big factor in selling long-term care solutions. People need to know not only what the product is but why it’s so important. 

Long-term care can be a complicated topic to discuss, both from an understanding and interest standpoint. On one hand, it’s hard to wrap your head around the need, and on the other hand, who wants to talk about what they’ll need when they age? 

A great way to emphasize the importance of long-term care solutions is using data and facts. For instance, the average cost of care in a skilled nursing facility is $100,000 a year. What’s more, 70% of people who are turning 65 today will develop a need for severe long-term care during their life. 

By educating clients on how important having a long-term care plan is, you can build trust while also increasing interest in the products you sell. 

Know Your Target Audience 

With the above facts in mind, it would seem that anyone would be a good candidate for long-term care solutions. And while that’s technically true, it’s important for independent insurance agents to really hone in on their target audience. 

For this particular product, the age cohort most likely to purchase long-term care insurance in the relatively near-term is between 50 and 64. These are the people who are, most likely, still working but also thinking about their long-term future the most. 

As such, you need to gear your marketing and prospective efforts to what makes these people tick. Where can you reach this target audience and what message will resonate the most with them? 

Being able to identify this and then craft a marketing plan that integrates those key components will be critical to your success. 

Drive Home the Benefits 

Why do clients need to purchase long-term care insurance? That’s the single most important question you’ll need to answer as you prospect for clients. 

If you aren’t able to answer that question efficiently and effectively, you’re not likely to have much success. Again, use data and numbers to illustrate the benefits of long-term care insurance. 

Many plans are available for less than $1,000 per year. If someone pays those premiums for 30 years, they’ll spend roughly $30,000 in coverage. 

That’s certainly a lot, but it pales in comparison to what they get in return. The American Association for Long-Term Care Insurance, for instance, says that the average claim for long-term care insurance is more than $142,000. 

And, as mentioned earlier, with such a higher percentage of people requiring this type of care at some point in their life, long-term care insurance seems to be more of a necessity than a luxury option. 

Never Stop Prospecting 

Remember, selling long-term care insurance takes a lot of time. In many cases, you will need to sell the services to prospective clients for years before they make a purchase decision. 

That’s why you should never stop prospecting. Good times to do so are when your clients’ other insurance plans — such as home and auto — are up for renewal. Bringing additional products into the conversation are a great way to offer more value to them and build the trust you’ll need to sell long-term care insurance. 

Discover the Good Life

At Good Life Insurance Associates, our experienced insurance sales associates are here to provide support and training for both new and experienced agents. To learn more about us, remember to explore our business support services. Or, to speak with a member of our team about your journey to becoming an independent agent, contact us today! 

Discover the Good Life 

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