Senior Insurance Training Services gives to you …
A “Who Pays” Puzzle
If you were so curious as to enter in your favorite search engine the query, “who pays for long-term care?” you have a good chance of landing on the LongTermCare.gov website, where you would learn:
Consumer surveys reveal common misunderstandings about which public programs pay for long-term care services.
It is important to clearly understand what is and isn’t covered.
Only pays for long-term care if you require skilled services or rehabilitative care:
In a nursing home for a maximum of 100 days, however, the average Medicare covered stay is much shorter (22 days).
At home if you are also receiving skilled home health or other skilled in-home services.
Generally, long-term care services are provided only for a short period of time.
Does not pay for non-skilled assistance with Activities of Daily Living (ADL), which make up the majority of long-term care services
You will have to pay for long-term care services that are not covered by a public or private insurance program
Does pay for the largest share of long-term care services, but to qualify, your income must be below a certain level and you must meet minimum state eligibility requirements
Such requirements are based on the amount of assistance you need with ADL’s (Activities of Daily Living)
Other federal programs such as the Older Americans Act and the Department of Veterans Affairs pay for long-term care services, but only for specific populations and in certain circumstances
OK, that’s pretty clear – and easy to find – isn’t it?
- Medicare pays a very, very, very small amount of long-term care costs and only under the most specific conditions
- Medicaid (MediCal in California) pays a lot of long-term care costs, but only after you have exhausted almost all of your income and assets
None of this is news. It’s been true since the first nursing home insurance policy was created in 1974 – almost a half-century ago!
Here’s the Puzzle!
Do your prospects and clients understand this fact about who pays for long-term care?
Why don’t you ask them?
- Ms. Prospect, who do you think pays for long-term care?
- Mr. Client, if you need long-term care, how much do you expect Medicare to pay?
- Friends, how do you feel about MediCal paying for your long-term care?
If you can ask those questions and listen attentively, your prospects and clients words will reveal windows to their soul.
If they don’t believe you, you can always send them to the LongTermCare.gov website.
Why Should You Unwrap This Gift?
Did you know that only 3% of the market is ready to buy now?
That’s where you and every other insurance agent is fighting for the opportunity to discuss LTC Insurance with prospects and clients.
What if you could “hit ’em where they ain’t” and reach the 97% who aren’t ready to buy now, but could be ready to buy with just a little contact with you?
The late Chet Holmes, who left us suddenly in 2012 at the young age of 55, revealed these opportunities in his great book, The Ultimate Sales Machine:
You could start with those who are open to thinking about it.
Next, you could approach those who are not thinking about it.
It wouldn’t be too hard to approach those who don’t think they are interested.
If you are brave, you could even approach those who know they are not interested.
Your competition – other agents – isn’t going anywhere near these prospects.
They prefer to fight over the 3% who are ready to buy now.
Hit ’em where they ain’t, my friends!
All you have to do is approach the 97% and ask them “who pays for long-term care?”
Hoping you choose to unwrap this puzzle on the second day of Christmas.