Among long term care insurance agents or brokers selling LTCI many are making crucial mistakes, affecting policyholders to drop their policies. An educated LTC agent or broker will rightfully replace coverage not suited in the client’s best interest.
By education, a better term is current awareness of costs, needs, tax effects, the policy choice, and even illegal agent activities. These topics, plus selling tips are highlighted here.
NEEDS- Here too often a scare tactic is imposed by long-term care insurance agents to sell that dwells solely on the dire consequences of not owning a long-term care insurance policy. However, the policy sold is often the one best suited for their prospect.
Too often, the prospect is never asked to tell me which of these two options is more critical to you. The first is sacrificing forever money and accumulations to pay for nursing or assisted care. The second is becoming a burden on children or relatives important?
COSTS- This is where an inexperienced agent can rapidly sink. The agent or broker first feels that the policy must cover the current cost. Then they almost keel over when seeing what the total costs would be. You need to understand first what long-term care insurance is before you hire an agent.
As an out, many sell a lower benefit policy, and tell each client, purchasing this policy is going to cover almost all your costs. LTC clients must be educated on current costs. Be honest with your prospective client. Give them the facts, and see how much of their problem can be solved.
POLICY CHOICE- Currently there are over 50 reputable insurance companies offering a variety of LTCI for either long term care or assisted living needs. Many of the higher quality policies are issued by non-branded companies.
A long term care insurance agent represents one insurance company and sells only the policies they offer. An LTCI broker independently can have a wide variety of LTCI policies to sell by two or more insurers. You can also click here to get more information about long-term care insurance.
TAX BENEFITS- The Federal Government, in what few people could actually consider a stupid move, has provided increased 2009 tax deductions for purchasing long-term care insurance. It is your responsibility as an LTCI broker or agent to provide these details to your clients.
In fact, it might be an exact door opening the opportunity for reviewing coverage of clients sold 2 years ago. A number of deductible limitations for 2009 is based on age grouping.