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How To
Help Boomers & Retirees To Find The Money...
For
LTCI, Life Insurance or a Medicare Supplement Policy.
Too many agents, when they
are selling, just expect their retired prospects to somehow come
up with the additional money needed to pay the premiums for a
LTC, a Final Expense, or a Medicare Supplement policy.
How much easier would it
be if you could show them how they can easily pay the premiums
and get a discount to boot? Do you think they might have just a
bit more interest?
Let's take a look at an
example. Assume for a moment that your senior prospects agree
that they want and need a long term care insurance policy.
Unfortunately, the $200 per month premium you have quoted is
simply too much for their budget.
Consider this; we are
asking them to spend $2,400 each year for the rest of their
lives! That's a big chunk of income for someone who is on a
fixed income. In many cases we are asking them to permanently
reduce their standard of living by 5% to 10%. That is a bitter
pill to swallow.
Over the next 20 years
they will spend $48,000, and in 30 years they will spend
$72,000. That's a lot of money for something they feel they may
never use.
How about instead we show
them how they can get the same policy for only $1,200 per year?
If they are earning 3%
interest, then they are using the income from $80,000 of their
savings to generate the $2,400 they need for the LTCI policy. Or, to put it another way they
are using (tying up) $80,000 of their savings to pay the $2,400
of annual premiums.
Instead, how about you
show them how they only need to use $40,000 of their savings to
pay the premiums? All they do is take $40,000 and put it into a
life income immediate annuity. The immediate annuity pays the
premium every year for the rest of their life. So, instead of
using (tying up) $80,000, they've only used $40,000 to pay the
premiums. And they still receive $1,200 of interest income from
the $40,000 that's left.
No matter how they look at
it, they are saving money.
If they pay the premiums
from their income or savings for 20 years they will have spent
$48,000, for 30 years $72,000). It takes $80,000 of their money
to generate the $2,400 per year.
By utilizing the life
income immediate annuity they are only spending $40,000.
Congratulations, you are now their hero.
More "Find The Money" Concepts...
How about you recommend
that they take $40,000 of equity out of their home to pay the
premium, using an interest only loan at 4.5%? Annual cost
$1,800… Savings $600.
How about using a reverse
mortgage to fund the policy premium? Annual cost "0".
Could they refinance their
home, take out the $40,000 to pay the policy and end with a
mortgage payment that is equal to or perhaps even less than they
are paying now? In today's low interest environment, why not?
Maybe you could do some of the mortgage shopping for them, get
them the best rate and earn a commission on the mortgage also.
If you want to truly help
your clients get the coverage they need you will have to find
creative ways to have the premiums paid. Help your senior
prospects to find the money and you'll close many more sales!
Do you want more ideas on how
to find the money, to increase your sales, then maybe it time
for you to become a member of the
Insurance Marketing and Sales Resource Center™.
Want to learn how you can
consistently 'Attract' and be in front of more
'Boomers and Retirees', then it's time for you to check out our
Annuity Sales Excellence™ Advanced Annuity Lead and Sales Tool
Kit.
Jeremy Nason
Trainer, Coach & Mentor
'The 9 Out Of 10
Guys'
Not Sure What To Do, Or Where To Start?
Call us to schedule a No Obligation, Free 15 Minute
Consultation!
Toll Free In US 877-297-4608
/ Direct Line 770-443-2852
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