August, 2002 Article Submission Journal Archives ABOUT FSO Financial Services Online (FSO) is the first and largest financial services publisher and portal on the Internet. Our publications include Financial E-News, Financial Services Journal Online and Messages From The Masters, which are available at no cost on our Portal http://www.fsonline.com ADDENDUM: This Newsletter is published by Financial Services Online, Inc. and distributed on a complimentary basis to members of NAIFA, subscribers of the Virtual Sales Assistant(TM) and selected other recipients. It is designed to provide financial service professionals an overview of the events and happenings that may affect their business. If you would like additional information on any items or the sources used, please e-mail us at e-news-list-admin@ e-news.fsonline.com Contact: Carolyn Hersman chersman@comcast.net Copyright © 2002 Financial Services Online. Reprints and/or permission to reproduce Financial Services Journal must be obtained in writing from the publisher, Financial Services Online. LEGAL NOTICE Please read these important legal notices concerning this publication About NAIFA Founded in 1890 as the National Association of Life Underwriters, NAIFA is comprised of 900 state and local associations and represents the interests of 90,000 life and health insurance agents and financial advisors nationwide. Many of NAIFA's members are NASD-licensed registered representatives or registered investment advisors. Benefits of membership include legislative and regulatory representation, education and training, and networking opportunities. The NAIFA umbrella includes the Division of Financial Advisors and three specialty organizations: the Association for Advanced Life Underwriting (AALU), the Association of Health Insurance Advisors (AHIA) and GAMA International.		Why You May Have to Unlearn Everything Youíve Been Taught about Sales to Sell Long-Term Care Insurance Effectively by Wilma G. Anderson, The LTC Coach To sell long-term care insurance effectively, you may have to unlearn almost everything youíve been taught about sales. Youíve probably been taught to perform a thorough analysis of the prospectís finances and look at the big picture before recommending products. That exactly the opposite of what you must do to sell LTC. You must focus like a laser on the need for long-term care insurance during the first meeting. Exclude everything elseóit will only muddy the issues. After your prospects have bought a policy and have become your clients, then you can examine their overall situation and recommend other products that meet their total needs. Some sales trainers claim that you need to make at least two visits to sell an LTC policy. Nonsense! Iíve sold more than 6,000 policiesóand have closed almost all of them in one visit. Hereís how can you sell more LTC policies with a ìone-page close.î Use these proven methods during your first visit to the clientís home and youíre guaranteed to succeed Keep it simple. Youíll want to establish a warm, personal connection with prospects. You donít need extraneous equipment, like fancy flip charts, to come between you and them. All you need is a sturdy legal pad, some rate sheets and a booklet, ìGuide to Health Insurance for People With Medicare,î published by the Health Care Federation of America. Most insurers that offer LTC policies will give you a free supply. Donít use heavy-handed scare tactics. Some people say you need to scare seniors out of their wits and tell them their children will be stuck changing their diapers when theyíre senile. But if you use the scare routine, you wonít feel good about yourself or your professionalism and you wonít sell as much. Do create the need. You must get your clients to envision a time when their health will deteriorate and how that will affect them. Denial is a powerful emotion you must overcome with frank talk, not scare tactics. Conduct a focused health interview. This has two goals. First, you need to find out if your prospects have any conditions that would prevent them from obtaining a standard policy. Second, when they see their health conditions on paper, it shows them why youíre really there to see them. Always ask this question: ìWhat are your plans when your health changes?î This is a key to creating need. It makes them think. Go through the product brochure, using a highlighter. Compare the rates and coverages from at least three companies. Now, youíre ready to close. Give the clients the application and have them fill it out themselves. When they participate, they take ownership of their decision to purchase a policy from you. Meanwhile, youíre filling other necessary forms. When both you and your client are filling out forms together, it sends a strong message that you are partnering. When you show clients the right product for their health, their budget and their overall financial plan, they will buy from you. Once youíve made the LTC sale, youíve opened the doors to selling annuities, mutual funds and financial-planning services. Wilma Anderson, The LTC Coach, in Littleton, Colo., is Americaís leading long-term-care insurance sales trainer. She sells at least 400 LTC policies a year, has nearly 7,000 in force and closes 92% of her sales calls. The LTC Coach (www.TheLTCcoach.com) offers agents a personalized tele-coaching program and The System to Sell 400 LTC Policies a Year a book/audiotape package that details how to use direct mail effectively, conduct the home interview, overcome objections and close on the first appointment. For more information, contact Wilma at 720-344-0312 or wilma@TheLTCcoach.com.