Advisors find it to be one of the most difficult types of insurance to sell but one LTC expert said it doesn’t have to be that way
Pricing is most often mentioned by advisors as a big reason why long-term care insurance isn’t nearly as successfully sold here in Canada as it is in the U.S. However, B.C. LTC expert Patty Randall believes part of the problem is advisors fail to properly sell the product forgetting that it’s a two-tiered process.
“We’re still asking the same questions of advisors. In my opinion advisors should help us [clients] justify buying long-term care insurance. Make it more of a worthwhile purchase,” Randall recently told LHP. “There are two costs to this: one is the dollars and the other is the emotional cost. Everyone who’s ever written on my website talk about the emotional side. Certainly when they talk about the insurance itself they mention the financial aspects but when the talk about the issue they always come at it from the emotional side.”
That’s a very important observation when you consider that there are really only four or five insurers selling LTC policies in Canada. The emotional side of the equation becomes a far more important aspect of the sales process when pricing is not really an issue because the marketplace is anything but competitive.
“I think it would be nice if there were some way to make it more affordable for Canadians,” said Randall discussing the pricing issue. “Maybe combo policies where LTC is combined with life insurance policies.’
Unfortunately, unlike in the U.S. where they are extremely popular, combo policies in Canada are offered by no more than 10 insurers making this reality a long way off.
What would Randall do if she were an advisor?
“I’d look at what combination of policies and hybrids we have in place. I’d look at who in my client base should be looking at it: single women, all solo-agers and the very middle class couples, only. I’d also look to my association to see if there’s some way we can get the Canadian government to endorse some kind of savings or insurance as they do with tax-based savings accounts.”
First, figure out who your target market is and what the right product is for their particular situation and second, show them success stories of aging well that address the emotional concerns clients have.
The answer lies in a two-tiered sales process.
“We’re still asking the same questions of advisors. In my opinion advisors should help us [clients] justify buying long-term care insurance. Make it more of a worthwhile purchase,” Randall recently told LHP. “There are two costs to this: one is the dollars and the other is the emotional cost. Everyone who’s ever written on my website talk about the emotional side. Certainly when they talk about the insurance itself they mention the financial aspects but when the talk about the issue they always come at it from the emotional side.”
That’s a very important observation when you consider that there are really only four or five insurers selling LTC policies in Canada. The emotional side of the equation becomes a far more important aspect of the sales process when pricing is not really an issue because the marketplace is anything but competitive.
“I think it would be nice if there were some way to make it more affordable for Canadians,” said Randall discussing the pricing issue. “Maybe combo policies where LTC is combined with life insurance policies.’
Unfortunately, unlike in the U.S. where they are extremely popular, combo policies in Canada are offered by no more than 10 insurers making this reality a long way off.
What would Randall do if she were an advisor?
“I’d look at what combination of policies and hybrids we have in place. I’d look at who in my client base should be looking at it: single women, all solo-agers and the very middle class couples, only. I’d also look to my association to see if there’s some way we can get the Canadian government to endorse some kind of savings or insurance as they do with tax-based savings accounts.”
First, figure out who your target market is and what the right product is for their particular situation and second, show them success stories of aging well that address the emotional concerns clients have.
The answer lies in a two-tiered sales process.
