Congratulations! You have completed another year of accident-free driving!
You pick up the phone and work your way through the automated menus to reach a live customer service person with your automobile insurance company.
You are so excited you can barely get the words out when they ask “how can I help you?”
“I’m calling to get my refund of all of the premiums I’ve paid.”
“I’m so sorry, Sir, but we don’t refund insurance premiums.”
“But I have had no accidents all year. I didn’t need your insurance after all.”
You know where that conversation is going to go – nowhere.
When it comes to long-term care, many people just don’t like that insurance equation.
They just can’t convince themselves to lose it (their premiums) if they don’t use it (receive long-term care benefits).
The LTC Insurance industry rejected the “use it or lose it” notion for many years. Eventually they responded with return of premium (ROP) benefit options, but priced those options at an additional 33% of premium or more.
Sure, you can get your premium back if you don’t use it, but you are going to pay for that option dearly. Few buyers selected that option, but many more still clamored for a reasonable return of premium product.
The Pension Protection Act of 2006 opened the doors for product innovation by introducing Hybrid, Linked and Annuity-LTC products that allowed for acceleration of benefits if long-term care services were needed.
If long-term care wasn’t needed, the policyholder’s beneficiary could receive their full life policy benefits or annuity payments, without losing those funds to traditional LTC insurance premiums.
If your clients don’t want to use it if they don’t use it, let us show you how they can have their cake and eat it too!
Author: Cindy Eisenhower
Cindy Eisenhower is a successful Long-Term Care sales professional with over twenty years of LTC Insurance experience.