Topic of the Month: June 2010
Three Common Objections
How to Use Them to Make an LTCi Sale

Some agents think an objection means they've lost the sale. Others know client objections present excellent sales opportunities. Here are three of the most common objections plus some good ways to help turn them into sales.

1. It's too expensive.

People who think they can't afford an LTCi policy may be surprised to discover they can't afford not to have one.

• Use Mutual of Omaha's cost of care booklet (M26548) to establish the cost of LTC services. Then ask whether the client would be able to write a $5,400 monthly check to a nursing home
• Show the premium break-even point. Paying $2,000 per year in premium totals $20,000 over a 10-year period. It would take just 100 days of nursing home care at $200 per day to reach $20,000. So in this situation, the break-even point is 100 days

2. My kids will take care of me.

People typically don't want to become a burden to their kids. Here's how to get them thinking about what being a caregiver really means.

• Talk about the cost associated with kids caring for a parent. Ask which child could afford to stop working to become a full-time caregiver
• Point out that an LTCi policy allows kids to keep the promise they made to care for their parents by hiring professional help to do the things they can't

3. I need to think about it.

For most people, purchasing LTCi isn't an immediate priority. Here's the perfect opportunity to discuss the cost of waiting.

• Talk about the best time to buy LTCi, which is the day before it's needed. Unfortunately, no one knows when that may be
• Remind the client that waiting until his health fails means he may not be able to purchase LTCi at any cost
• Discuss the fact that LTCi premiums are based on age. Waiting just one year may mean paying six to seven percent more. Compare that with interest rates currently earned on retirement savings to illustrate the time to buy is now