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Successful Long Term Care Planning Discover the Missing Piece: Developing Need


When and how to show the illustration. What Do YOU Believe About Long Term Care Insurance? ... 'People are silently begging, Don't try to sell stuff to me. ... – PowerPoint PPT presentation

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Title: Successful Long Term Care Planning Discover the Missing Piece: Developing Need

Successful Long Term Care PlanningDiscover the
Missing Piece Developing Need
  • Rose Clayton, CLTC, CSA
  • Manager, Long Term Care Sales Marketing
  • CPS Insurance Services

  • Beliefs (Yours Your Clients)
  • Why is Long Term Care a Problem
  • The Path of Discussion
  • Asking Questions ListeningAsking More
  • When and how to show the illustration

What Do YOU Believe About Long Term Care
  • Its too expensive
  • My clients just dont think they need itthey
    may never use it
  • Its very complicated
  • I dont understand it well enough to explain it
    to my clients
  • I dont want to embarrass myself in front of my
  • Im too busy with my other products
  • I cant cope with the objections
  • I dont have my own policy

Whats Going On in Your Clients Heads?
  • They think long term care means Nursing Home
  • They dont want to think about getting old or
    losing their independence one day
  • They dont like to be shaken from their DENIAL
    and they dont want to think about it NOW
  • They dont want to pay for a risk that seems so
    far away or that they may not need
  • They dont like being responsible for it. Its
    more comfortable to think about somebody else
    taking care of it for themlike their spouse,
    kids, other family, friends, neighbors, the
    Government, or God
  • They dont know what care could cost them now or
    in future
  • But they think they probably will have enough
    money to pay for it if it happens

Why is Long Term Care a Problem? "Will you
still need me, will you still feed me, when I'm
- -
Lennon and McCartney When The Beatles
released "When I'm 64" back in 1967, 64 years was
about as long as most Americans were expected to
live. In 1900, the average life expectancy for
Americans was 47.3. Today it's 77.9.
Life Has Changed. Were Not Dying Like We Used
  • Increased Life Expectancy
  • Born in 1900, your life expectancy was 47
  • Born in 2000, your life expectancy is 77
  • By 2035, there will be 57 million Americans over
    the age of 70
  • The fastest growing segment of the U.S.
    population is age 85 and older
  • Rapid Advances in Medicine
  • Acute infections, diseases, accidental injuries
    are no longer deadly
  • Within next 10 years, experts predict cancer will
    be classified as a chronic illness manageable
    with new classes of drugs
  • Chronic and Degenerative Conditions
  • As medical breakthroughs extend and improve
    lives, more individuals are living longer with
    chronic illnessesarthritis, heart ailments,
    stroke, diabetes, dementia
  • For others who have been healthy, the normal
    aging process prevails. The healthier youve
    been, the longer you live.

When You Dont Die
  • You live
  • When you live, you get old
  • When you get old, you get sick
  • When you get sick, you need care.
  • Harley Gordon,
  • Founder, Corporation for Long Term Care

  • Lets face it. If we live long enough, its
    going to happen to most of us.

But its not all bad. This long life gives us
unprecedented opportunities.
  • Another whole life is available in retirement
  • Your grandchildren have you longer
  • You are able to continue your commitment to the
  • To live longer and healthier than our ancestors

Living a Long Life is a Near Certainty.
Planning For It is a Necessity.
  • The Path of Discussion with your client is based
    on the following 3 sequential steps
  • Establishing the need for long term care planning
    because of longevity
  • 2. Understanding that Long Term Care is a Family
  • 3. Realizing that their savings or Retirement
    Portfolio is the only thing that will pay for care

Use a Fact Finder
  • Establishes credibility by focusing on a plan,
    not the sale of a product.
  • Helps to qualify your clients both financially
    and physically.
  • Enables you to understand your clients personal
    experience and family situation.
  • Gathers the necessary information to design the
    plan with the features and benefits that match
    your clients needs.

Asking the Right Questions Has Two Purposes
  • Helps you understand your clients concerns,
    emotions and feelings.
  • Establishes your clients reasons for purchasing
    long term care insurance.
  • People are silently begging, Dont try to sell
    stuff to me. Listen to me, value me, understand
    me, and let me know that you want to help me.

  • Integrity Selling for the 21st

  • Ron Willingham

Begin with Fact-Finding Questions
  • Jim, Im prepared to talk about long term care
    planning, which we discussed on the phone (in our
    earlier meeting). If you could give me your
    perspective (thoughts) on that, we can focus the
    meeting on what interests you.
  • Before I got here today, you probably had a
    conversation about long term care. Would you
    share your thoughts with me?
  • When you hear the words long term care, what do
    you think of?
  • Have you had any prior personal experience with
    someone who needed long term care? What happened?
    Who provided the care? How long did the illness
    last? What effect did care giving have on your
    family? Who paid for the care?

Personal experience is important. If theres
been none, ask
  • What have you heard about it?
  • Why are you interested?
  • Why do you think you might want long term care
  • Ive had an experience and I want to take a
    moment to share with you the impact it had on my
  • (If you have not had a personal experience, use a
    clients or someone you know

Long Term Care Is Not A PlaceIt is a continuum
of care, housing, and services people and their
families may need because of a disability or
chronic illness. Its assistance with everyday
activities of daily living or supervision due to
a cognitive impairment. The goal is, whenever
possible, to have the individual age in place.
Step 1 Establishing the need for LTC because of
  • LTC is a problem today because people are
    living longer. Wouldnt you agree? If you take
    reasonably good care of yourself, you are likely
    to live a long life. Even if you dont take care
    of yourself some new medicine or procedure is
    likely to be developed that will extend your
    life. When you live a long life you could need
  • Could this happen to you?

Dont Assume AnythingListen to what your client
  • It is absolutely important that your client
    agrees that he /she will live a long life and
    when they do live a long life, there is a
    reasonable likelihood that they will need care.
  • Never assume that the client understands. Listen
    to what they say. Do they mean it?
  • After they agree, askThe question is not who
    will take care of you, but rather what will
    providing that care do to your family and your
    retirement portfolio?

More Fact-Finding Questions
  • Is it important for you to maintain your
    independence in the community without placing a
    burden on your family?
  • Are you concerned that a chronic illness will
    threaten your commitment to continue to provide
    for your spouse?
  • Is it important to control the quality of care
    that you receive and where it is delivered?
  • Is it important to preserve your assets and
  • Will you have a continuing financial obligation
    to any of your children or grandchildren that
    have personal problems or are physically or
    mentally challenged?
  • (For Second Marriages) Is it important to
    distribute your assets to your children according
    to your will or prenuptial agreement?

Increase the volume of information from your
  • Once the topic is on the table, help your client
    think by probing deeper
  • Tell me more about
  • Would you elaborate on
  • Give me an example of
  • What else should I know about
  • What else would help me understand
  • Believe that the sale is being made when the
    client speaks about the need. Not one moment
    is wasted.

  • Socratic Selling

  • Kevin Daley

Bridge to Personalizing Need
  • If you live a long life and need care, what is
    your plan?
  • If something happened today and you needed help,
    what would your concerns be? Whats your plan?
  • Have you thought about who would take care of
  • Have you thought about the impact providing for
    your care could have on your retirement
  • Are you comfortable using your own income,
    assets and resources to pay for long term care

Personalizing Need
  • What income and assets have you allocated to pay
    for your long term care plan?
  • Is it important to preserve your principal?
  • Is it important to preserve your income?
  • Where do you want your care to be delivered?
  • Have you discussed long term care planning with
    your children?

Step 2 Understanding that Long Term Care is a
Family Issue
  • It has little to do with your client. Its about
    their Family.
  • Who suffers? The familymostly the spouse or
    adult child.
  • Patient is taken care of by family, which
    struggles to provide the care necessary to keep
    their loved one in the community.
  • Caregivers suffer from stress related illnesses
    and can become as chronically ill as the patient.
  • This effort exacts a terrible price on the
    caregivers health and relationships with other
    family members, usually siblings who do not
    equally share the burden.
  • Long term care rarely brings families togetherit
    can tear them apart.
  • The illness runs the family.

Asking more questions
  • What impact do you think long term care would
    have on your family?
  • Is it an option for your family to take care of
  • What kinds of things do you envision your
    children doing for you?
  • Which of your children will be available to care
    for you?
  • Where do they live? Will they be able to move
    to help take care of you?
  • How could the financial and emotional burden of
    a long term care situation affect the
    relationship between your children?
  • Would your daughter/son have to take time off
    from work? How would that affect your childs

Step 2 Understanding that Long Term Care is a
Family Issue
  • When you live a long life and need care your
    family will do everything in their power to keep
    you out of a facility.
  • If the client is married look at his spouse
    and ask
  • If your husband needed LTC would you do
    everything that you could to keep him out of a
  • If you need care your wife will take care of
    you, but there is a cost to that care. Think of
    it this way. She will be under a tremendous
    amount of stress being your caregiver. What will
    that stress do to her? How will that stress
    affect her health?
  • Whats your plan to protect her?

Step 2 Understanding that Long Term Care is a
Family Issue
  • Your children will do everything in their power
    to keep you out of a facility. What effect will
    that have on their lives?
  • What effect will the stress of care giving have
    on their health and the relationships that they
    have with their families?
  • What effect will the stress of care giving and
    decision making have on their relationships with
    their brothers and sisters?
  • Whats your plan to protect your children and

Your Client Begins to Realizeits not about me.
Its about my family.
  • It is important that your client agrees that
    living a long life and needing care will have
    serious consequences to his family.
  • Never assume that the client understands. Listen
    to what they say. Listen for their sincerity.
  • Long term care insurance is not sold to
    individuals. Its
    sold to families.

Selling LTC Insurance Is Not Much Different Than
Selling Life Insurance
Care Coordination a HUGE Benefit to Families
  • Care Coordination is the professional service
    that brings the help when you need it most to
    the policyholder and their family in the
    confusing, often overwhelming time that care
  • Professional Care Coordinators are licensed
    health care providers who are independent of the
    insurance company and local to the community.
  • A personal Care Coordinator acts as an advocate
    for your client and works with them and their
    family directly to develop a plan of care,
    identify care providers, provide advice about
    resources, provide assistance with claim forms,
    and help with implementing care and monitoring it
    as needs change over time.
  • This valuable component is part of the policy at
    no additional cost. 
  • It's the main reason people receiving care are
    able to stay at home and maintain their
    independence for as long as possible. 
  • And it's often what motivates wealthy people to
    buy a long term care policy. 

Step 3 The Retirement Portfolio is the Only
Thing That Will Pay for Care
  • What have you allocated from your retirement
    income and portfolio to pay for your plan of
  • It is here that client may jump to the conclusion
    that they can self-insure. Discuss the
  • How inflation will effect LTC costs in the
  • How taxes and capital gains will be added to the
    LTC bill.
  • Loss of investment opportunity.
  • Preservation of principal.

What Does Care Actually Cost in Todays Dollars
and What Will It Cost In the Future
  • Today, average cost  75,000 per year
  • In the future, at a rate of 5 compounding per
    year, cost will increase to
  • 150,000 per year in 15 years
  • 300,000 per year in 30 years
  •  Assuming most LTC claims likely to last between
    3 5 years
  • A 55-year old will need to have between 900,000
    to 1.5 million dollars set aside by age 85 to
    pay for anticipated long term care costs for one
    person, if they dont want their lifestyle to be
    adversely impacted by the cost of their care.
    They will need an equal amount set aside for
    their spouse.
  • Where will the money come from?

Client Has Protected Principal and Assets Their
Whole Life

LTC Insurance is Life Insurance for Retirement
PortfoliosIts risk management.
  • Life Insurance protects Principal.
  • LTC Insurance protects Principal.

Step 3 Nothing will pay for care except
Retirement Portfolio
  • When you consider your option to self-insure, do
    you feel that if you had to pay for care that you
    would be able to continue to provide for each
    other? Would you be able to stay at home and
    still have that feeling of security? Would you
    be able to keep the same lifestyle that you have
  • What commitments do you see yourself carrying
    into retirement?
  • (Spouse, Children/Grandchildren, Church)
  • What are your passions that you plan to pursue
    when you retire?
  • (Golf, Travel, Time with Family and
    Friends, Hobbies)

Step 3 Nothing will pay for care except
Retirement Portfolio
  • When you retire, do you intend to live on your
    principal or your income?
  • Would you like to pay for your care with
    principal or interest?
  • If I could show you a way that you could receive
    your care with tax free dollars and also control
    the quality of care and where it is delivered
    without burdening your family, would you be

  • When and How to Show the Illustration

Show How a Policy Works
  • This is how a LTC policy works.
  • Its very simple. There are 4 things we will
  • 1. Daily Benefit how much per day will the
    policy pay
  • 2. Benefit Duration how long will the policy
  • 3. Elimination Period a Time Deductible
  • 4. Inflation Increases how we make the
    benefits in the policy grow to keep pace with the
    increasing cost of care in the future

Always Explain Inflation Increases - Go to
Inflation page
  • Compounding Interest Accumulates TAX-FREE
  • Show how todays 292,000 pool of with 5
  • can grow to 608,820 in 15 years,
  • and 1,264,360 in 30 years.
  • All available to be used TAX FREE for long term
    care expenses

The Break-Even - Do this on a legal pad
  • This shows how the investment in long term care
    insurance will be
  • recouped quickly when client receives their care
  • Example
  • Annual Premium - 2,142
  • Number of years paid x 30

  • 64,260
  • Divided by daily cost of
  • care in 30 years 866/day
    75 days
  • You only need to receive care for about 2 ½
  • to break even on the premium dollars you invested

Cost-to-Benefit Value - Do this on a legal pad
  • This shows how long term care insurance is
    costing pennies on the dollar
  • Example
  • Annual Premium - 2,142
  • Number of years paid x 30

  • 64,260
  • Divided by value
  • of benefits in 30 years 1,264,360
    5.1 cents paid for every dollar of benefit
  • Who wouldnt want to do this as a part of
  • their sound financial planning?

  • Objections are a predictable part of the LTC
    sales process. The truth is there are no silver
    bullets. The idea of handling the objection is
    to get inside the clients head to understand why
    they said what they just said. Always agree with
    them by acknowledging that their objection is
    valid. And then, question why they feel that way.

  • I need to think about it.
  • Well, you know thats fineI understandthis is
    a difficult decision for some people. So what
    youre saying is that remaining self-insured may
    still make more sense to you than having
  • Yes maybe.
  • With all due respect, why do you feel that way?
  • I just dont think I need it right now.
  • I understand that right now you dont think
    youll need long term care so why pay for the
    protection. But may I ask, when will you know
    that youll need it?
  • Well I guess I wont know until I do need it.
  • So you are willing to take the gamble that you
    would be wrong at a potential cost of hundreds of
    thousands of dollars, when you can transfer the
    risk for pennies on the dollar and not have to
    worry about it?

  • Im never going to need it
  • Oh, so you are one of those who adhere to the
    Plop Method.
  • (with a bewildered look) What is that?
  • So you think that youre going to get to be 85,
    90 or 95 and youre just going to go plop
  • Oh yes, thats exactly what I want.
  • Well, how many of your family or relatives or
    friends has that worked out for?
  • (Client will probably acknowledge that its not
    very many)
  • I recommend that you plan for something other
    than plopping.

  • I dont want to pay for insurance that I may
    never need
  • I understand that nobodyincluding me--ever
    plans on needing long term care and its natural
    to not want to spend money on the insurance. But
    may I askwhen was the last time you got out of
    your car and said, boy, I didnt use my car
    insurance todaythat was a waste!
  • I will take care of my mother.
  • I know you will. I want to talk about a way that
    you can provide that care LONGER BETTER.
  • The long-term care insurance premium is too
  • Lets put the premium and the problem into
  • The premium is not the problem.
  • The premium is the solution to the problem.
  • Option Something is better than nothing. How
    much per year can you comfortably afford for a
    long term care insurance premium? Lets take
    that number and work backwards to create the best
    policy we can.

  • I just want a quote.
  • The issue right now is not whether or not you
    need insurance. Its more important to start the
    process of putting together a plan for long term
    care. (and if they shared personal experience)
    In fact, youve told me the consequences that not
    having a plan had on (person who need care)

CPS Long Term Care is Here to Help You Protect
Your Clients and Their Families
  • Rose Clayton, CLTC, CSA
  • Manager, Long Term Care
  • (800) 326-5433 x 159
  • David Mayhew
  • LTC Sales Marketing Associate
  • (800) 326-5433 x 127
  • Kristin Perez
  • LTC Case Manager
  • (800) 326-5433 x 113
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