December 6, 2016

Does this sound like you? You’ve been helping your clients with their health insurance and prescription drug plans, for years. You’re comfortable in that world, and you know the plans inside and out. But what happens when they see a TV commercial, or some other agents approaches them about a product you don’t offer, or one that they don’t know you offer?

You owe it to your clients - and to yourself - to ask them the following questions to make sure they’re covered. You don’t need to be an expert on these either, we’ll help you with the cases (and you get the commission). And if you want to become an expert we’ll help train you.

1. Have you had a family member use home health care or go into a nursing home?

Depending on their answer, follow up with one or both of these questions: How did they pay for it? How would you pay for it?

The purpose of this question is to start a conversation about long term care insurance. The most popular solution we are seeing and utilizing is a “hybrid” life insurance product with long term care benefits. Clients find it easy to understand, and value the fact that the insurance will be used, unlike traditional LTC plans where they “use it or lose it”. Also, clients enjoy the fact that the premium will not increase.

Rate increases and the thought of perhaps never using the insurance are two major reasons clients don’t purchase traditional long term care insurance. Life with a long term care rider silences that concern.

2. When was the last time someone did a life insurance review for you?

Depending on their answer, follow up with these questions: Do you have life insurance? What is the death benefit? What is your premium? What is the cash value?

Obtaining your client’s most recent statement on an existing life insurance policy (or policies) has proven to benefit hundreds of clients this past year. Life insurance products have changed over the years. The ability to add benefits, eliminate or reduce the premium or simply confirm the existing policy will or won’t last as currently funded, has been a huge asset for clients. Everyone wants to know that they are getting the most for their money and that the insurance will do what it was originally purchased to do.

3. Have you made any arrangements to take care of final expenses?

It should come as no surprise we’re talking about Final Expense insurance here. There’s a good chance your client has been putting this off, because nobody really wants to think about this topic. You can use this as an opportunity to educate them on funeral costs and their options for paying for it.

They may be under the impression that buying a prepaid plan from the funeral home is a good option. Whether they bring this up or not, you may want to explain the pros and cons of that option.

For those without a large life insurance policy, a small final expense policy can be an affordable way to help put client’s mind at ease.

4. Do you have a mortgage or any debt that needs protection in the event of premature death?

Your client should consider what might happen if they die and leave behind a spouse and children. Will they be able to stay in their home?

Term life insurance is ideal for covering debt should premature death occur. It is typically offered for “terms” between 10 and 30 years, depending on your client’s age. They can buy a significant amount of life insurance for the most affordable premium. Term life insurance covers the client’s life typically as income replacement or debt protection coverage.

5. Are you satisfied with the present rate of return on your investments?

Many seniors are looking for a safe, guaranteed, and competitive interest rate product. They feel the security of bank CD’s are nice but lack a competitive interest rate. Offer your client a Multi-Year Guaranteed Annuity (MYGA) as a possible solution. They are safe and the interest rate is guaranteed for the time period they select, typically between 1 and 10 years.

Asking these questions is not replacing what you do, but adding to it, with very little time commitment. Remember, someone is going to approach your clients about these topics - shouldn’t it be you?

By simply asking those five questions to open a conversation, we have agents adding $50,000 to $125,000 to their existing income without deviating from what they do best - Medicare Supplements. We’d love to help you do the same!

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