LTC Sales to Rise 15% in 2007
Interesting article by way of the Insurance News Network today, purporting that long-term care (LTC) insurance sales will increase 15% over 2006 sales.
Jesse Slome, the executive director of the American Association for Long-Term Care Insurance, noted a handful of reasons for the expected increase in his article.
For the first time, he says, 8 million Americans now own some form of long-term care protection.
"The Parrot Effect says that people mimic the behavior of others. When consumers ask their friends whether they own LTC insurance, 8 million of them will now say 'Yes, I do!' That's a significant point you can't overlook."
Indeed. And considering that annual LTC benefits topped $3 billion in 2006, lots of happy people with checks will tell other happy people who will undoubtedly want checks. And that means new policies. Lots of them.
While the Parrot Effect could prove powerful, Slome has named three additional reasons for the increase in LTC sales:
1. The government's getting involved.
According to Slome, the third phase of the Department of Health Services' "Own Your Future" campaign will result in the mailing of "well prepared informational material" to several million households—to residents between 45 and 65. Personally, I'm not a huge fan of direct mail, but this might carry some weight.
2. Simplified products make selling LTC easier for agents who don't specialize in it.
New, innovative and versatile products yield new sales possibilities for those who don't specialize in LTC. "Key to the changes is simplification, designed to enable tens of thousands of insurance and financial professionals who have not (yet) delved into LTCi sales the ability to offer their clients long-term solutions without having to become a long-term care insurance specialist," says Slome.
3. Market Stability = Awesome
Consumers and agents alike forget about the correlation between interest rates and LTC insurance rates, says Slome. In fact, he notes, some experts have reported that a one percent decline in long-term interest rates correlates to a need to increase LTC premiums by as much as 20 percent!
So whether you're a seasoned LTC sales vet, or a general newbie, this should be a great year for LTC sales. Check out the full INN article here, and for more sales inspiration, stop by the Agent Resource Center!
