Omega Financial Associates

Objection #1: "It's too expensive!"

Every major LTC insurer has raised rates. Some have done it to their long-time policy owners. A few have exited the business. Most of the remaining companies have raised rates by introducing new, more costly products and removing their old ones from the market.

Today's higher premiums, coupled with today's higher costs of care, make the "It's too expensive" objection even tougher to overcome. Your prospects shouldn't buy a policy that they can't afford.

Here are some new ways to reduce costs without crippling coverage:

Sales Tips

• Steer clear of lifetime benefits. Lifetime benefits are expensive because people see an unlimited pool of money to draw on for care services. So they are quicker to file claims. Try a 10-year minimum benefit period instead.
• Consider new inflation protection options. A leading LTC insurer offers a 5%/3% inflation protection option. Monthly benefit limits still increase by 5% every year, but the pool of money used to pay benefits grows at 3%. This can be a good cost saving option, when you consider the fact that about half of the people in nursing homes are there for less than one year. Other options with potential cost savings:
  o 5% compound with a two times cap
  o 5% simple instead of compound
  o guaranteed purchase options ("pay as you go" inflation protection).

Objection #2: "I have to lose in order to win!"

How many times have you heard prospects say, "If I die without needing long-term care, the insurance company keeps all my premiums. I have to lose my good health, or lose my premiums."

Sales Tips

Recommend MoneyGuard©. MoneyGuard combines the benefits of life insurance with long-term care coverage, so it always pays a benefit, even if the insured requires no long-term care.

But MoneyGuard is often best suited for people who have enough rainy day money to self-insure. Many people who need LTC coverage cannot afford to own MoneyGuard. And MoneyGuard is not available in all states.

Here are two other solutions:

• Supplement a traditional LTC insurance policy with life insurance. Recommend a death benefit that's one or two times the expected lifetime LTC insurance premiums. Ask Omega to quote a universal life insurance policy for that purpose. You will be surprised at how affordable the additional premiums can be. What's more, the full death benefit is paid, regardless of the client's future need for long-term care.
• In states where it is available, consider MoneyGuard Flex. Unlike single premium MoneyGuard, the client pays annual premiums to MoneyGuard Flex. With optional extra cost inflation protection, Flex funding can be a good choice for younger retirees and pre-retirees. Please remember, though...MoneyGuard Flex does not provide a money back guarantee, and certain versions of MoneyGuard Flex may not include the minimum benefit guarantees.

The MoneyGuard and MoneyGuard Flex universal life insurance policies have riders that accelerate the death benefit to pay for covered long-term care (convalescent care in MA & WA) expenses. An Extension of Benefits rider is available at an additional cost to continue long-term care (or convalescent care) benefits after the entire death benefit has been paid. The MoneyGuard Series is issued (in FL, KY, MD and MN) by First Penn-Pacific Life Insurance Company and all the other states (except NJ and NY) by The Lincoln National Life Insurance Company (Policy Forms L-2020/LL-2020 and Rider Forms - 2800/LL-2800, respectively. Guarantee is subject to policy terms and conditions and is in effect provided there have been no policy loans or withdrawals and coverage is maintained at recommended levels. The benefit will be paid as long as the policy remains active. Guarantee is based on the claims paying ability of the issuring company. Products and features subject to state availability. MoneyGuard is a registered service mark of The Lincoln National Life Insurance Company.