Insurance Information

Once primarily a senior product, buyers of long term care insurance continue to get younger. As recently as 2000, the average policy was written on a 67-year-old. Last year, according to Association studies, some 83 percent of all new individual applicants were under the age of 65, while the average age was 58. As a result of the significant demographic shift, leading insurers have retooled their product offerings to address the two primary concerns of younger buyers: affordability and the concern about paying many years for something that might not be needed.
The result has been the introduction of a variety of "life stage" long term care insurance policies that enable policyholders to lock-in their health insurability and purchase a more limited level of protection with the future ability to purchase additional coverage periodically in the future. Provisions for these policies vary, and it's fair to recognize that the added coverage is purchased at attained-age rates. That said, the ability of agents to now allow pre-retirement-age buyers to "kick the tires" by owning some long-term care insurance offers one of the greatest opportunities to expand and grow market penetration into the future.

Looking ahead, three significant marketing opportunities will likely yield the greatest results for producers seeking to identify new prospects or convert their existing clientele into long-term care insurance prospects.

The first is recognition of maturing awareness among consumers. The industry has entered a new phase of awareness; one that requires focus on new messaging pertaining to health insurability, affordability and the ability to receive care in one's own home.

For those targeting seniors, the increasing number of states rolling out LTC Partnership policies has generated a good deal of excitement among insurance agents who must now complete additional continuing education training. The opportunity to build sales -- especially among middle-income consumers -- will be predicated on the willingness and ability of states, insurers and agents to promote the importance of LTC planning, coupled with the key benefits provided by Partnership provisions. It's still very early in that process.

Watch for the announcement regarding the Federal government's long-term care insurance offering; currently the nation's largest long-term care insurance group plan. The first Federal open enrollment resulted in some 270,000 individuals purchasing coverage. When the federal plan opens enrollment again (expected later in 2009), there will again be a most positive spillover effect that will boost sales across the country.

Finally, the message of affordability continues to provide the greatest opportunity to overcome existing mis-perceptions. Studies repeatedly validate what's been known for well over a decade; that consumers perceive the cost of LTC insurance to be higher than it really is. A message of affordability always plays well. It's one that, to date, has not been widely used; but expect that to change as more aggressive marketing techniques heat up.

For free audios on selling long-term care insurance visit the Producer's Resource Center of the American Association for Long-Term Care Insurance.

Jesse Slome is Executive Director of the American Association for Long-Term Care Insurance. The industry trade organization does not sell insurance products but maintains an excellent website for consumers seeking additional information on the subject. If you would like to receive a no-obligation free quote from a member of the Association, visit our Consumer Information Center.

Article Source: http://EzineArticles.com/?expert=Jesse_Slome