Why People Buy LTC Insurance
Significant research has been conducted on why people buy LTC insurance – and why they don’t.
This knowledge will help you understand people’s motivations regarding this product decision – and what you must establish if you want them make a purchase decision.
Your ability to master the art of questioning will be the ultimate determinant of your success as a long-term care insurance salesperson. You must understand the impact of closed-ended vs. open-ended questions.
Mastering the different types of questions combined with effective listening is what separates the champions from the rest in selling this product.
Why are people interested in long-term care insurance?
- Burden: most people don’t want to be a burden to their spouse, children, relatives or friends. This burden is both emotional and financial.
- Quality Care: Some people realize the quality of care available under welfare can be less than private pay. Also, quality nursing homes tend to favor private pay patients during admissions.
- Asset Protection: Everything an individual has worked for can be wiped out by nursing home costs. A lot of people would rather have their home, life savings and other assets go to their family or charity rather than a nursing home.
- Aversion to welfare: There are people who simply do not want to be dependent on the government for care. They feel welfare is for the truly needy, not for people trying to hide their assets in order to qualify.
- Independence: We are used to making choices in our lives. We choose where we want to live, what kind of car we drive and who our doctor is. Most people wish to maintain control, rather than relinquishing their independence to welfare.
- The peace of mind offered by long-term care insurance is immeasurable. Being able to rest at night knowing one is protected, instead of worrying about what to do if something happens is a feeling most people desire.
People who have chosen not to buy long-term care insurance have identified four key reasons.
First, many believe the product is too costly.
Second, they are waiting for policy improvements.
Third, they are waiting for the government.
Finally, they just don’t see the need. (Denial)
In each of these reasons lies an opportunity for you to assist the prospect in understanding how to make the product affordable, understand the real benefits of your product, forget about the government and recognize their critical need for this protection.