From The Best Of The Best: Selling Tips To Boost Your LTCI Sales

From The Best Of The Best:Selling Tips To Boost Your LTCI Sales A Workshop Provided By Margie Barrie HANDOUTS

Agenda • Why you MUST mention LTCI • Transitioning to the LTC Sale • The Top Ten Sales Tips - Use of questions - Role of family - The 5 Minute Sale - How to close - AND MORE! • Conclusion

1. Why You MUST Mention LTCI • People need this product • Protect your book of business • Court cases • Impact of today’s economy • Consumer awareness

Economic Crisis “If you lost half your net worth and needed long-term care, you would be in a financially impaled position of having to liquidate a proportionately larger chunk of your savings in an undervalued market with little opportunity to recover. In these times of tumultuous markets, it is more improbable than ever to self-fund and invest your way through a LTC event.” Mike Skiens, Master Care Solutions, Portland, Oregon.

“Long Term Care insurance is a risk based business. From the consumer’s point of view, it should be the insurance carrier who is assuming that risk. Taking premium dollars and turning them into a secure Retirement is a predictable, safe option in today’s world of economic uncertainity. There is no better time than the present to protect the money that has not already been lost in the investment world.” Julie Gelbwaks Gerwitz, Gelbwaks Insurance Services / LTC Global

“When you own a well designed LTC Insurance policy, the benefits are clear and precise. The amount of money you would receive isn’t subjected to market swings. It isn’t going to fluctuate based on your investment choices.” Mark Goldberg, ACSIA / LTC Global

2. How To Transition To The Sale P&C Agents Life Agents & Financial Planners

Sample Transition Statement I would like to bring to your attention, just from my own liability standpoint, an issue that could wipe out your long term financial future – not only for one another but the potential inheritance for your children, which is where my exposure lies. What I want to do is have someone visit with you who is more focused in long-term care, who can talk to you about what you could do and what $ amount you would need to protect your situation in the event something happens. This can ensure that you do not wipe out your financial security for one another or for your heirs.

3. The Top Ten Sales Tips Tip 1 - Traditional Definition – What Is LTC? Long term care is assistance given for personal care over an extended period of time. This includes informal and formal care giving. This type of care is usually received in the home, assisted living facility, skilled nursing facility and adult day centers

More Relevant Definition Of What Is LTC? To better understand long term care, think of the activities you performed when you woke up this morning. • Climbed out of bed • Walked to the bathroom • Used the toilet • Used the bath or shower • Got dressed • Ate breakfast

Tip 2 – Two Important Points A. It’s About The Family This isn’t only about the client. It's also about what's going to happen to their family when the client ultimately needs care. In this day and age, we can plan ahead. • It’s not “WHO” will take care of your client – but what providing that care could do to his family and finances • Families may provide the majority of care • Caregiver stress may result in severe tension • Long term care rarely brings families together

B. It’s About Planning 1. It's not about long-term care insurance anymore. It's about LTC planning. 2. I'm here to replace your long-term care plan. I understand you don't have LTC insurance, but you do have a long-term care plan. It's your 401(k), it's your daughter. Or it’s going to be your 88-year-old wife. You do have a plan, but it may not be the most effective plan.

Tip 3 - Using Questions When To Stop Talking Use the 70/30 rule

Questions For The Beginning Of The Appointment • How did you become interested in investigating long term care insurance? • Have you looked at other long term care plans? • Tell me about your family? How old are your parents? Do you havebrothers and sisters? What do your kids do? • Has anyone in your family ever needed care?

Using Questions • What are your plans WHEN your health changes? • What exactly would you do if you were to require care tomorrow? Where would the dollars come from to pay for care, and who exactly would provide this care? • Do you really want to place the emotional and physical burden of long term care on your family and loved ones? • If you had a stroke next week, what would you do?

Using Questions • Can you carry your husband? How would you transport your spouse to or from the bath, the toilet, across the house, etc.? • How would you feel about your own health if your spouse got Alzheimer’s and got up frequently at night, causing you to get very little sleep? • For Younger Prospects - Your family is young and growing. If something were to happen to you in the next few years, your disability income would not come close to covering this. And all your plans would come apart. What would you do in this kind of situation?

Financial Questions • Are you still employed? • What do you do for a living? • Do you have a defined pension benefit or is it a 401k, IRA, etc? • When you do retire (or now that you are retired) do you think you will stay in the area or do you think you may move someplace else? And, if so, where?

Questions About Children • Their ages • Where they live (if not at home)? • Would any of their kids would be in a position to quit their jobs and become FULL TIME caregivers? • Do they want to place that kind of burden on the family? • Could they really quit their job and ignore their own family?

Tip 4 - Five Minutes To LTC Insurance Sales Success Provided By Barry Fisher & Ron Hagelman Selling LTCi Without TheStruggle

The Daily Benefit Sold Today X The Number of Years (Days) Sold Factored By The Inflation Option Chosen Until the Actual Time of Claim Economic Benefit of the Policy (Face Amount) What Is A Benefit Pool

It is very likely that you will live a long life • It is very likely that you will need long-term care • It will be very expensive and the cost today is not your problem • It is the inflated cost sometime in the future – 20 or 30 years from now that you must plan ahead to provide • YOUR CHOICES ARE CRYSTAL CLEAR • You will pay out of your hard earned retirement money • You will become a ward of the state • Or you can transfer the risk to an insurance company • You take the risk or let the insurance company do it!

Coping With The LTC Risk • Pray - That you live a long and healthy life and that one night you go to sleep and the good lord takes you out • Family - You had better be very nice to your kids and hope that they can help • Society - Welfare – is that what you really want? • Do-It-Yourself - How good of a saver are you and will you have time? • Transfer The Risk - Long-term care insurance

Context For Decision Making Identify The Risk Answer The Age-Old Question How Much Will Long-Term Care Cost When I Need It? • Cost of care in your region today. • How old are you today? • When are you likely to need care? • Long-term care rate of inflation • How long does the typical claim last?

Your Formula For LTCi Sales Success Example Cost of care today = $73,000/year ($200 per day) Client Age 57 Projected First Claim Age 85 Rate of Inflation = 5% (cost doubles every 14.5 years) At Age 85 Annual Cost of Care = $273,000 Typical Claim = 3 to 5 years How Much? $860,000 to $1,500,000 Identify The Risk

Where Will The Money Come From?

Transfer The Risk Or Do It Yourself Let’s assume you do not wish to end your journey on welfare or be a burden on your family That leaves us with • You PAY IT or • THE INSURANCE COMPANY PAYS IT Let’s take a look at your options & you decide

I Have My $1,000,000 Do You?

Tip 5 - Great Closes MARGIE’S 3 CLOSES • Assumed Close • Medical Qualification Close • 30 Day Free Look Close

Assumed Close Take the application - which had been previously placed on the table when showing the clients the product brochure - pick up your pen and say, “Mrs. Client, what is your middle initial,” and start completing the form.

Medical Qualification Close “Mrs. Client, right now the decision is not really yours. Because of your medical conditions, the decision is really the insurance company’s. So let’s complete the application and see if the insurance company will even cover you.”

30-Day-Free-Look Close “Mr. Client, don’t worry if you can’t decide which benefits you really want. You actually have almost 3 months to make a final decision on the benefit selection - like taking lifetime coverage versus 5 years. The reason is it will take from 4 to 10 weeks for the insurance company to issue a policy (the longer period of time is due to any delays in obtaining medical records from your doctor). Then you have a 30 day free look, which means that when I return to deliver the policy in person, you have 30 days from the delivery date to modify the benefits or even to cancel the policy. “

When One Spouse Refuses • “Mr. Client, your home is lovely. Which half do you have insured?” • The real reason you are taking this is not for yourself, but to protect your wife. If something happens to you and you need long term care, this policy will provide the dollars so that your wife can maintain a decent life style while paying for your health needs.

Can’t Close On First Call? Setting the next appointment “I have given you a lot of information to absorb and review. Let’s arrange a second meeting next week. That will give you enough time to review the information I am going to leave with you. Yet, it is a short enough period so you won’t forget the details we discussed today. Which is better for you - next Wednesday at 3 p.m. or Thursday at 10 a.m.?”

Tip 6 - The Two Mistakes • There are really only two mistakes you can make with long-term care. • Mistake number one is you get one of these plans. It doesn’t matter which one. You buy a plan, pay every year, live a long happy and healthy life, die in your sleep with a smile on your face and the money you paid in is… • You now pause, and many times they will answer by saying the money is gone. • Right. The money you paid in is gone. Had you known that this would be the case, you would never get a policy. Provided by Matt McCann

Mistake No. 2 Mistake number two is you stay self insured - which what you are right now. Then one or both of you need care. Not only do you pay for it yourself out of your pocket, but the rest of the burden is placed on your family.

Looking At The Two Mistakes Let’s say you get this plan and your premium is about $1800 a year. You live another 30 years and at age 85 you die in your sleep with a smile on your face - never needing a day of care and thus never getting a dime out of the policy. You get to the pearly gates, they look at your file and they laugh at you, because you made a $54,000 mistake for having this policy and never needing it. By the way, that amount is less than one year of care in today’s dollars.

Mistake No. 2 • Now, mistake number two. You decide to not get this policy and roll the dice. Twenty years from now, when you are 75, you need care just for three years, you pay for the care out-of-pocket. Based on past trends, the average cost of care will be about $435,000. • If you have to make a mistake, which mistake has the least impact on your family - the first one or the second one?

Response That is why top financial advisors and the federal and state government encourage people like you to look into LTCI. It is just common sense.

The Last Part Of The Close • What I recommend for you and what most of my clients do at this point is apply to see if you can approved. • You sign the application and medical release, and submit the first monthly premium. They purchase your medical records for the underwriter to review. You will also have a phone interview with a nurse. • The process takes about 6 to 7 weeks, I deliver the policy in person, review everything and then you have 30 days after the date of delivery to change your mind and get your first premium back.

Tip 7 - Referral Process First appointment - he mentions to the client that if they know anyone like them and who shares the same concerns, he would appreciate a referral so he could review the information with them. He tells them to think about it, and we will talk when I see you again. Provided by Matt McCann

Referral Process • Send a LTC Concerns Survey – lists 12 reasons why people obtain LTCI • Asks them to rank the top 5 • At bottom of form, has a section which reads, “I have the following friends, relatives and loved ones who may have some of the same concerns that I have listed above. Please send them information about their long-term care options” It has a postage paid envelope for returning it. • At policy delivery, again ask for referrals

Top 8 - Reasons To Buy LTCI 1. To preserve their financial independence 2. To protect assets and preserve their estate for their heirs 3. To maintain the wealth they created over a lifetime 4. To avoid leaving a legacy of debt to their spouse or children 5. To avoid depending upon family members for their care 4.

6. To be seen as a blessing for their loved ones, not a burden 7. To ensure that they have access to quality care and care choices 8. To ensure that the economic crisis will not affect your ability to pay to fund a decent retirement lifestyle Assets = Income Income = Lifestyle LTCI protects income and lifestyle

THESE POLICIES WORK! Tip 9 - WE PAY CLAIMS.

Tip 10 - Power Phrases That Work Why? • Gaining client’s trust • Beating out the competition

Phrase 1 - My Goal Brokerage Approach - My goal is to provide you with the most appropriate combination of benefits from a top rated company at a reasonable cost.

Phrase 1 - My Goal Career Agent Approach - My goal is to provide you with the most appropriate combination of benefits at a reasonable cost from a company with a long history of protecting and serving the needs of the client.

Phrase 2 – NH Avoidance Policy “I actually consider this a Nursing Home Avoidance Policy. This policy provides the dollars to keep you out of the nursing home. Because the purpose of this policy is to provide the dollars so that you can age and receive care where you want to from the person you choose. So that means the dollars are there to pay for care in the least restrictive setting possible with the greatest number of choices.”

Phrase 3 – Choices And Control “This policy provides you with choices and control, so you can age where you want.” Americans want to age in place!

Phrase 4 - My Family . . . “My family will take care of me. Well, this policy will enable your family to take care of you at home.”

From The Best Of The Best: Selling Tips To Boost Your LTCI Sales