Gelbwaks Executive Marketing Corp. (GIS)

Most of us do not like becoming involved in anything with which we are not comfortable. We also usually do not want to take on projects that we don't completely understand. We definitely avoid things that could embarrass us and, most importantly, the very last place we want to find ourselves is involved in something that could unknowingly expose us to potential litigation.

With that being said, exceptionally important coverage is being overlooked for the majority of our clients. Long term care insurance is not owned by close to 85 percent to 90 percent of those that should own it, and many studies tell us why our clients and prospects do not own this type of coverage.

In the paragraphs to follow, I want to address only the top two reasons given in all the surveys dealing with the sale of long term care insurance (LTCI) and a possible positive answer for you and your clients to the issue of such a lackluster response. The object of this article is to develop a win-win scenario where your client actually obtains this much-needed coverage and where you begin to make a handsome living delivering these much needed policies to your clients, creating new clients in the process, or both.

So here are the two big objections given by virtually all the non buyers and, just as importantly, by the non-sellers:

1. It is just too complicated
2. It is just too expensive

You will find excuses not to become involved in virtually anything you do not understand. This is human nature. When we were still in school, a lot of us avoided calculus, English literature, and foreign languages like Latin, etc. We may have decided the subject matter was beyond our comprehension and instead took electives we felt came more naturally to us, like art, sports, music or even study hall. Could we have used the information learned in the more complicated subjects to help us in different ways in later life? In most cases, very much so, but we avoid what we do not know or, more importantly, what our preconceived notions tell us we will not understand. So let's drill down on No. 1 together and come to an agreement on what exactly is so complicated.

It's just too complicated

Is it that the topic itself is confusing? Many people believe so. LTCI will be needed by about 50 percent of us sometime in our lifetime, but only about 10 percent of us are willing to deal with it now. Maybe that is because we think the federal government will pay for it through Medicare and/or Medicaid). Please go to the Center for Long Term Care Web site (a not for profit organization) and read any number of articles written by my friend Steve Moses, who has spent the last two decades trying to convince Americans of to the pitfalls of that type of thinking. Steve is much more eloquent and more educated than I concerning that answer.

Is it that the main LTCI product the industry began developing more than three decades ago and is still currently offering now have too many different options/benefits/riders to choose from? The answer to that question is absolutely.

Most of us in the LTCI industry now agree that we very much need to follow what I refer to as the "The Rule of P." No, not the "Rule of Peter," but the simplification of the Product design, the selling Process, the Presentation, the processing of the application and claim, and the premium offerings.

What is the easiest, fastest and simplest way to achieve that goal? I am so glad you asked me that question! It is by utilizing the cash benefit model of long term care insurance. Nothing could be less complicated than selling cash. There are a number of carriers that offer this program in whole or in part, and investigation into which one is best for you and your client can be done with just a little research. Cash is still king, and your clients will not complain that it is "just too complicated."

It's just too expensive

Well, the stark reality of this statement is that, in almost every single case, LTCI products of the past have been underpriced, not over-priced, which should tell us all that pricing is not going down now or in the future. Prices have stabilized; however, some of that was caused by governmental demands while some of it was based on carrier actuaries getting a lot more conservative in their assumptions.

In any case, let's assume we need to change our approach (presentation) and not wait for cheaper pricing to take place. How do we do that? We change the dialogue completely. We move away from talking about long term care, nursing homes, assisted living facilities, home health care aides and services, and we just talk about cash. The "Money Exchange" presentation I developed a number of years ago works and particularly for those of us who do not want to become LTCI Ph.D's , but for those who desire to get their clients insured with a product they will understand and one that makes sense to them from a 15-minute presentation.

For those who actually want me to walk you through that simple presentation, be sure to read my next article.

*For further information, or to contact this author, please leave a comment and your e-mail address in the forum below.

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October, 13 2006