In a time when more and more agents seem reluctant to engage clients about Long Term Care, we are suggesting a more relaxed approach using Rick Management principles as an approach.
Imagine sitting on a plane; you turn to the passenger next to you and ask what they do. The nightmare scenario is that they tell you they sell life insurance. At that point, you grab your book and hope the flight passes quickly.
However, if that passenger told you he/she was a Risk Management specialist, you would be intrigued, right? This premise sets up a low-stress conversation that is designed to get the client leaning in.
People are many things – among them are curious and talkative. Both will help you in this situation.
Introduce yourself. Ask questions. Be interested and learn. Eventually, an opportunity will open up, allowing you to tell them you are a Risk Management Specialist. We’re certain this will generate at least one question and allow you to further the conversation.
“I’ve developed a subspecialty in Risk Management because as I talked to my clients and others, I began to realize that the great majority aren’t aware of a significant risk they’re – for now – stuck with. “I’d like to talk with you about how this affects you and your family. It’s pretty important and it won’t take very long.”
You explain that while they have most traditional risks (home, cars and life) addressed, there is one potential risk most Americans aren’t even aware exists.
It is rare that they have anything in place to keep a chronic health issue from destroying their financial planning. Risk is like Matter – can’t be created or destroyed. It can only be transferred. Why retain risk on something that could get so big it could wipe out their retirement plan?
There is a 50 percent chance they’ll have to deal with the financial effects of a chronic health issue. Only two choices: hold the risk or negotiate a transfer now — when they are relatively young and healthy. They can leverage a small amount of 2014 dollars for a lot of 2035 benefit.
While there are some things we don’t know, there are others we do know:
The Cost of Care in their area is $7,500. The average length of a claim is 4 years. That means their exposure in today’s dollars is $360,000. And it will increase nearly triple over the next 25 years.
You as a Risk Management Specialist are uniquely positioned and licensed to help them negotiate a transfer of this risk to a company that specializes in warehousing risk. But there are a couple things to talk about.
What percentage of that $1 million do they feel like they want to pay? Do they understand clearly what they will need 25 years down the road?
You’re going to negotiate on their behalf to secure Placement for XX% of the risk based on current numbers. But there is some information you need.
And you begin the application…