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.