Industry News

Who Buys LTC Insurance?

The Life Insurance Marketing and Research Association (LIMRA) conducted conduct a series of focus groups that included likely buyers of LTC insurance.

Key findings indicate that the typical LTCI buyer is:

  • Exposed to LTC issues through a friend or family member
  • Moved by testimonials of hardship resulting from an LTC event
  • Female, age 55-64
  • Married with adult children
  • A “planner” who is interested in financial issues and owns life insurance and other conservative investment products
  • Seeking education and guidance

These findings are almost self-evident, but for those who don’t do much LTCi business, they can help you find the “low-hanging fruit”.  In my experience, if the first two factors are missing, you don’t have a prospect.  And, you can waste a lot of time with a person or couple who are simply “seeking education and guidance”.

One additional observation:  Be sure to ask if the person expressing interest in LTC insurance has access to it through work, an affinity group (AARP), or trade association.  I’ve been blind-sided by not doing this on several occasions.  After doing a lot of work, the prospect will hand me a proposal from an agent that got their name through a referral service and can provide them with a plan of LTCi at a 5% or 10% discount.  The plans may have limited choices (“Plan 1, Plan 2, Plan 3”, etc) or other restrictions, but if it’s a “street” contract – the same kind we can all sell – at a discount, you can’t beat it.  Find out this important point of information up front and save yourself some possible grief.

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