Blog #7: If You Think Education Is Expensive, Try Ignorance

(There are no InsMark presentations used in this blog.  It is a an informational blog only)

The title of this Blog is a quote from Derek Bok, President of Harvard from 1971 to 1991.

Let me rephrase it in an insurance context:

If You Think LTC insurance Is Expensive, Try Self-Insuring

Why is LTC insurance viewed as so expensive that many people would rather self-insure it? It’s because the typical sales presentation assumes it will be purchased from income thereby reducing a client’s cash flow. If it is instead presented as purchased using withdrawals from assets, and if overall assets end up greater because it is acquired, it can’t be viewed as the expensive option, can it?

To review the mathematics behind this logic, read Blog #6: How to Prove Which of Your Clients Should Purchase Long-Term Care Insurance.

“Would you like to know mathematically whether self-insuring LTC is a valid option?” is a very compelling question to ask people of means who believe in self-insuring LTC. This question is so powerful that it is pretty easy to get a prospect to reveal comprehensive details of the financial data needed to develop the evaluation examined in Blog 6.

This produces another advantage related to the presentation, particularly if it is made to a new prospect. Once you finish the discussion of the results of your study, whether LTC insurance is purchased or not, you now have a detailed data base of your prospect’s net worth. The obvious next step is to integrate other wealth planning concepts into a new presentation without the often hard first step of convincing a new prospect to reveal personal financial details — you already have all that information.

Since you’ve been successful in enhancing net worth with your LTC evaluation, you likely have these additional resources available for new concepts you introduce — perhaps gifts to heirs or charity or funding the tax cost to convert a large IRA or 401(k) to a Roth or maybe the source for loan interest payments for a premium financing arrangement. With funding “found” by your LTC calculations, the possibilities are endless.

Good luck and good selling.

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created Referral Resources to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice. You can utilize your choice of insurance company, there is no commission split, and you don’t have to change any current relationships. They are very familiar with running InsMark software.

Please mention my name when you talk to a Referral Resource as they have promised to take special care of my readers. My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration.  Contact:

• Ben Nevejans, President of LifePro Financial Services in San Diego, CA.

More Recent Articles:

Blog #6: How To Prove Which Of Your Clients Should Purchase Long Term Care Insurance

Blog #5: It’s Awkward Trying to Sell My Friends

Blog #4: If Something Important You Believe To Be True Turns Out To Be Wrong, When Would You Want To Know About It?

Blog #3: Identifying Good Prospects, Discarding Bad Ones

Blog #2: Anyone Want a Free Dog?

 

3 Reasons Why It’s Profitable For You To Share These

Blog Posts With Your Business Associates and

Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive