How to Take Down Your Real Annuities and Long Term Care (LTC) Competitor
- By Julie Stewart
- January 22, 2016
Your biggest annuities and long-term care competitors are not other agents. It is your clients’ lack of information.
One of the best ways to bring value to a client or prospect is to give them a vision for accomplishing something they did not think was possible.
A client will not buy something they do not know they need or do not think they can get. This is especially true when it comes to long-term care insurance (LTC). Chances are, a significant portion of your book has not looked into LTC coverage because they think they cannot afford it or they think they will not qualify for coverage.
In discussing the need for long-term care and hybrid annuity/LTC solutions, an obvious question comes up:
What about the people that want LTC insurance, but cannot get it due to their health?
Clients who are uninsurable for life insurance and traditional LTC coverage are often those who need it most.
Even those with an active lifestyle can have difficulty obtaining coverage due to a particular medication or condition. Simplified underwriting may not always be simple enough, so you should consider a new solution.
Fixed index annuities (FIAs) can offer an attractive and easy alternative by leveraging income riders. A client can receive guaranteed income payments for life and have those payments double in the event they become unable to perform two of the six activities of daily living (ADL’s). This often costs less than an LTC policy, allows clients to receive care at home rather than a nursing home or hospital facility, and best of all, does not require any medical underwriting.
As long as your client can perform all 6 ADL’s at the time of purchase, they are eligible to use these rider features. Once the five-year doubling benefit is exhausted or is no longer needed, the client will still continue receiving the initial income amount.
These annuities still have value even if the client never needs care.
The lifetime income stream provided can never decrease and provides peace of mind in that it will never run out. No longer will objections about cost or issues with their health prevent your clients from getting the protection they need.
Schedule a consultation today and let us design a care solution that fits your client’s particular circumstances. We make it our job to help you present solutions to your clients they did not know were available.
No matter how complex the situation, we make sure every possibility is explored.