At American Independent Marketing, we are in the unique position of seeing sales data for thousands of agents. We’ve been studying changes in producer sales over the past 12 months and have uncovered an interesting trend. Among a select group of long term care insurance agents, sales have been exploding by as much as 600%.
The Long Term Care market hasn’t disappeared, it’s changed. Agents are now needing to focus on solving a problem rather than placing a product. As health issues become more difficult to work with and a previously unnoted concern for risk is included, a toolbox approach to the solution is imperative. While agents who don’t shift their approach to adapt to the changing market are seeing the LTCi marketing increasingly difficult, those that are adapting are unlocking significant new sales.
What are these agents who are seeing their long term care insurance sales explode doing differently? Here are the six key ideas we have identified that have unlocked their dramatic sales growth.
Not all clients are the same. Work with your clients and develop a thorough understanding of their interests and priorities. A Fact Finder is a great tool to make every client interview as thorough and productive as possible so that you arrive at the correct solution rather than just a solution. Before you make any product category recommendation or product within a category recommendation, your job is to make certain your clients are moving in the appropriate direction. This will engage your clients in the process and the solution and set you up for more, stronger referrals in the future.
In addition to aligning financial priorities, deal with adverse health issues the right way and do it pro-actively. Be sure you complete a thorough health screening before selecting a product -- you may find out alternative products are the only thing they can qualify. It’s better to know this before you submit an app or even introduce the benefits of a specific solution. By identifying health issues early, you avoid sales-killing app declines and avoid having to present the correct solution as a “lesser” offering.
You have access to a thorough menu of alternative product solutions that can handle virtually any health problem but it’s easier and more productive to employ the right solution at the beginning. Stop ignoring “lesser benefit” products that can provide real assistance at a time of crisis. This will increase your profitability by reducing your lead acquisition costs and increasing your placement rates.
Everyone agrees that the best source of new clients is existing clients. Are you actively working to maximize that opportunity? You’ve obviously worked hard to help your clients, ask them for introductions to their children and other relatives. They have a great success story and (hopefully) and even better service story to tell on your behalf. Grow your sales numbers by making certain it gets told.
Put a system in place to regularly and effectively reach out to existing clients that makes it easy for them to refer you. This can be as simple as setting a recurring reminder in your calendar. Create an email or postcard that you send out where you remind your customers of the service and value you have provided them with and then ask them to pass your name on to their family with an offer to conduct a review of long term care needs.
Cash is back! Cash benefits dominated the Long Term Care conversation for many years and now it’s back thanks to an innovative, continuous pay product with guaranteed benefits and premiums that came to the market a few months ago. Cash is king. Generate more sales just by presenting your clients with the easiest path toward benefit utilization.
You will likely have clients who want the control that comes with cash benefits – make sure you have a solution for them. Ask us for more information on how to position this outstanding opportunity.
Make sure you have added a Risk Tolerance Profile into your screening process. Gauging and understanding your client’s concerns on safety and rate and benefit guarantees has never been more important. This will help you frame the options against your clients’ emotional view of risk as well as their concrete financial and health situation.
New products have come on the market that address the needs of clients with different types of risk tolerance profiles. Are you up to speed on the latest simplified, guaranteed hybrid solutions? One way to ensure sales growth is to ensure your client’s primary concerns are understood and addressed.
Stop leading with your idea of the right solution and give your clients two product profiles at the same time so they can choose the right solution for them. You need a solid background in multiple products so you can give an agnostic overview of the products. And with the thorough understanding you gained in the Fact Finder, Health Screening, and Risk Tolerance Profile gathered in new sales process, you have the information you need to objectively talk through multiple solutions. An agnostic overview will allow your clients to make an informed choice they’re comfortable with. And when they are comfortable with their choice, they are ready to buy.
Open Your Mouth. Long Term Care matters, so bring the topic up. Many agents have walked away from the market and their client’s needs at the same time. This problem won’t solve itself, so start the conversation with your clients. They won’t approach you until it’s too late. Agents who are ready to grow their business can get more information at https://whyaim.com/