"All Aboard The Long Term Care Express! "
by Ed Auble, CLU, ChFC, MSFS,
FLMI, LUTCF, CASL

It is 2008 and you are waiting at the United States Railway Station. Newspapers in nearby vending machines announce " Thirty-five million Americans have already turned age 65, a number which will double by 2030."; "Those in the 85-plus category represent the fastest growing segment of our population"; "6000 Americans turn age 65 every day"; "Pennsylvania has the second oldest population in the country". Can't you hear that distant whistle?

Magazines in the newstands proffer that "Spending for long term care represents 80% of the healthcare costs faced by seniors!"; " $75,000 per year on average in Pennsylvania for a nursing home stay"; "500,000 Americans annually spend down all their assets and become Medicaid wards-of-the-state. Welfare cases. Indigent. Thirty bucks spending money monthly in the nursing home". The intensity and the pitch of the whistle increase as the once-distant engine draws closer.

There you are on the station platform struggling to decide whether or not to buy a ticket. The squeal of the wheels as the train rounds the nearby bend increases your palpable tension. Do you buy a ticket? Buy? Don't buy?

Your thought pattern is broken by the strong voice of the stationmaster. "Attention! Attention, all waiting passengers! Now arriving is the Long Term Care Express. The passengers include 76 million baby boomers, 10,000 of whom started turning age 50 daily in 1996. Those with products and services to sell, have your tickets ready and be prepared to board."

The clickety-clack of the wheels slows as the train rolls into the station. Billows of steam announce its arrival. Decision time. To board or not to board? The choice is yours.

Let's return mentally to the railway coffee shop, enjoy a beverage, relax and discuss why you might want to board the train.

First of all, as a professional insurance agent, is there a market for you in long term care? Well, there is certainly a market for long term care. The media universally proclaims its existence. Here are two reasons why I - and perhaps you - might like it. One, demographics. Short of a cataclysmic extinction of the human race, every agent will have a trainload of prospects during his/her career. Secondly, Uncle Sam said in the Kennedy-Kassebaum bill(H.B. 3103) signed August 21, 1996, that we, all of us, are on our own regarding payment for long term care costs.

Some tax-favored treatment will affect a slender slice of the population, but that's it (Parenthetically, aren't there parallels to disability insurance and social security? Yes, Uncle will provide something to some people, but…). And we do have the Federal government's long term care insurance program and the revitalization of the Long Term Care Partnership Program with DRA 2005. These programs will encourage Americans to purchase long term care insurance.

Now, understand, I am not faulting the federal government for not funding a comprehensive long term care program; my upbringing has me tending toward Emerson and self-reliance. After all, we do have a national debt which currently exceeds nine trillion dollars. No, we must recognize our own needs and personally fund them.

So, what is the good news? Well, lots of prospects for many years to come with little alternative to what only you, the professional insurance agent, can offer - long term care. The Long Term Care Express will roll for many years in full view of a government unable to impede its progress or pay for its maintenance.

If you decide to board the train, let me give you some thoughts, which hopefully will make the trip more enjoyable:

"1. Learn the product(s) you plan to sell but remember that…Joe Gandolfo said that, "…selling is 98% people knowledge, 2% product knowledge". This is certainly applicable to the sale of long term care because…

"2. You must understand the psyche of seniors. While the mantra in real estate sales is location, location, location, in dealing with seniors it is trust, trust, trust. Ask them why they are interested in long term care. Listen to their stories. Their stories will tell you how to close the sale. But, in addition to product knowledge and building trust, you must…

"3 Understand Medicare, Medicaid, "spenddown ", and what are considered countable, non-countable and inaccessible assets. Why? Because you must destroy all the putative alternatives to long term care insurance. Your prospect is hoping that there is some alternative to spending a couple thousand dollars annually for long term care. There is - if he/she has maybe a million or more in liquid assets. But even then, a $2000 annual premium may be preferable to a potential $75,000 annual nursing home cost.

There are two other strong reasons to board this train. Seniors who become long term care clients are excellent referral sources and persistency borders on 100%.

As you finish your coffee, you jot down on your napkin a "Ben Franklin" pro and con checklist. If you buy a ticket, you will have loads of prospects, people with money, high premiums, good commission levels, excellent referral sources, superb persistency, the tacit support of Uncle Sam and a market which extends beyond your sales career. There are no "cons" that I can see, unless you just prefer not to deal with seniors. But, they are good people and remember that, with good fortune, you will be a senior someday; so will your peers/prospects.

Sara Taylor, RHU, my associate, and I boarded the train in 1988. The ride has become increasingly smoother and faster.

So why not purchase your ticket, board the train and settle down to enjoy the ride. Chances are that you will remain onboard. If you need a tour guide, please give me a call. I have seen much of the landscape already.

All aboard!