To Buy or Not to Buy, That is the Question!
if he wrote Hamlet
in the age of Amazon
Why do people buy and why don’t they buy LTC Insurance?
We make buying decisions with the rational side of our brain and the emotional side of our brain.
On the rational side, it’s all about the the numbers.
- How much does this cost?
- What’s the quality of the carrier?
- What are the features and benefits?
- How reliable is this carrier?
- Are there any warranties?
On an emotional level, they buy things because they’re afraid of something or they recognize that this is very important emotionally.
- How does this look?
- How does this feel?
- Who’s the brand?
Let’s take a look at the buyer/non-buyers survey done by Life Plans in 2015 and explore why people buy a long-term care solution?
- The biggest reason was asset protection and to leave an estate behind for the people they love.
- Next is making sure that they can afford care when the time comes because they recognize how much it costs.
- After that was protecting their living standards
- Right along with maintaining their independence.
People buy they don’t want to be dependent on their children or other loved ones. They want to make sure they can stay where they are protect their standard of living and afford care and leave their hard earned money behind.
Why people don’t buy a long-term care solutions?
The survey found the number one reason – 53% of the time – because it was too expensive. Perhaps we’re overdoing things out there.
- 18% of the people are waiting for better policies (which we now have!)
- 16% couldn’t decide what to buy, so maybe we are showing them too many options and
- 13% didn’t trust the carriers – the insurance companies.
What are people buying?
They’re buying hybrid products, because hybrid products have guaranteed premiums and guaranteed benefits. There’s no use it or lose it. The premiums cannot change.
Just look since 2010 at this chart. There’s been a steady decline in stand alone traditional LTC Insurance and a huge increase in the hybrid product.
Focus on why people buy and why they don’t:
- Asset protection – leaving an estate
- Affordable access to care when the time comes
- Protect their living standards and avoid dependence
Make the premiums affordable so they can protect their estates. Take a look at the hybrids – it’s because they’re right in line. There’s a product out there they can pay on an annual basis that gives them affordable access to care.
Help them choose, but don’t give them too many choices. Decide what’s best for them so they can protect their living standards and you can regain trust, because the carriers that are selling hybrids are new and highly rated carriers.
New insurers and new rules.
Next in our series is “Face Your Fears and Start Asking for Appointments.”