11 Jan 2007
My Affluent Clients Don't Need LTCI Coverage
For Agents Informational Use Only
Really? Maybe you should discuss it with them this way:
The problem affluent people face when it comes to LTC expenses is the lack of liquidity.
They do not want to have to sell assets in order to pay for care. Many people have the asset value needed but it could very well be non-liquid.
Expenses for LTC will continue to grow thereby compounding the problem.
Expenses of $250,000 today would be over $400,000 in 10 years and over $600,000 in 20 years assuming a 5% growth rate.
One excuse we hear a lot around here is "my client can afford to self-insure" That always astounded me!!! If they can afford to lay out potentially hundreds of thousands of dollars for care then why wouldn't or shouldn't they be paying a few thousand dollars in premiums, that may very well have tax advantages to protect their assets and cash flow?
Many people who have substantial assets know the value of spending "pennies" to protect their dollars. Cash at claim time Vs. selling off valued property.
It would be a good idea to discuss this with those you may not have approached in the past as well as those who may have "sold" you before. Let us know if you'd like a quote or supplies.
Todd Concklin
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