LTCI is for Annuity Producers Too
By Lauren Bingenheimer

Attention annuity producers: LTCI can be for you too. Thirty years ago, long term care insurance was new and not nearly as important, but today no one can depend on family or others to take care of him later in life. This is one message you should definitely be sending to your clients.

You've probably heard it before: Annuities are a great way to cross-sell LTCI. Annuities are for forward-thinking individuals; the couple or individual who is thinking about how to take care of their finances in retirement or to pass money on to heirs. They are the same types of people who are thinking of who will be taking care of them or how they'll be taken care of later in life. Whether they know it or not, they are thinking about long term care insurance. As an advisor helping to create income later in your clients' lives, shouldn't you show them how to protect those assets? If you're not talking to your clients about long term care insurance, rest assured, someone else will.

For pennies on the dollar, your clients can add an essential investment to their portfolio that protects all other investments. Many clients assume that the annuity you advised them to buy may eventually end up paying for the cost of care. While this is a possibility, given the sharply rising cost of care, even an annuity may not cover all necessary expenses. So, consider the possibility of using the annuity for another purpose and purchasing a separate LTCI option. Your clients are already planning for an increase in living expenses, so why should they not plan for an increase in care expenses?

As an agent selling annuities, you already have a leg-up on the competition — you have your own built-in prospecting list. You know how financially qualified your clients are for a long term care policy. You have the relationship with them. And, chances are, your clients are already looking at long term care insurance. This is about as hot as a lead gets!

One idea many advisors have put into practice that has ultimately increased long term care sales is performing an annual review with clients. This not only shows your client that you continue to care about his investments, but it also gets you in front of the client to present long term care insurance. By not at least presenting the idea to your client, you could be leaving business on the table.