Creating AGB: Advisor Generated Business

Redefining the basics of creating need and urgency Where’s the market? The strategy used to exploit it and why it generally doesn’t work All things old are new again Executing the strategy

What do prospects think you are talking about when you use the term “long-term care”? Consider using the term “extended care” Consider the term “frail” not “sick”

My goal is to help you align your message with the culture of those you want to be a referral resource to

Upper middle-class families hold the key to long-term success in the individual LTCi market These prospects work with centers of influence. They are broken down into two groups: Those that control access to new prospects Those that existing prospects engage before they make decisions

Financial service professionals Lawyers Estate planners Medicaid planners CPA’s Insurance & Annuity professionals

Educate COI about… The client’s risk of needing care How needing it will impact his ability to secure top quality care in the setting of his choice How paying for care will impact his assets Then educate the professional about how LTCi protects the individual And position yourself as a long-term care insurance professional and suggest they work with you…

Does it appear to be working?

A: Not enough time spent on product? B: Failure to more fully explain your area of expertise? C: Failure to understand their culture? D: They simply don’t get insurance?

FA’s “yes you to death” and then… Tell their client’s they can self-insure Higher net worth insurance professionals “yes you to death” and then… Tell their higher net worth client’s they can self-insure Estate planning attorneys “yes you to death” and then…

Three Steps to Success

Understand their Culture Step 1: Understand their Culture

A financial professional’s culture is based on planning, not product They are trained to ask questions that solicit what’s important to the client A plan is then created to address those concerns. The ultimate goal of the plan is to provide income Then and only then, are investments (products) recommended

The Life and DI insurance professional’s culture is based on planning, not product They are trained to ask questions that solicit what’s important to the client and then educate him about the consequences an unexpected death or disability would have on those he loves A plan is created to mitigate these consequences. The goal of the plan is to guarantee income Insurance is then positioned as a funding source for the plan

Estate attorneys are in the planning, not product business Their job is to help clients determine how and when they want wealth distributed A plan or plans are created to accomplish those ends. They could include a business succession, tax reduction or special needs plan The ultimate purpose of these plans is to guarantee income by preserving assets

The two critical common denominators The two critical common denominators? Planning and Income Protection / Preservation

Develop a Message Consistent with their Culture Step 2: Develop a Message Consistent with their Culture

Extended care is not a product issue, it’s a planning issue Failure to create a plan for extended care will disrupt every other plan the COI has established

Is terribly disruptive to a tax plan Professionals who sell life & DI understand this message FA’s understand this message Estate planning attorneys understand this message Is terribly disruptive to the plan you established to keep financial commitments during retirement Is terribly disruptive to a succession plan

It’s terribly disruptive to a premarital agreement in second marriages Estate planning attorneys understand this message It’s terribly disruptive to a special needs plan Professionals who sell life & DI understand this message It’s terribly disruptive to a charitable giving plan All professionals understand this message It’s terribly disruptive to a plan to secure the financial viability of a surviving spouse

Position Yourself as an Authority Step 3: Position Yourself as an Authority

You are a professional in the field of extended care planning You bring to the discussion information about a subject matter that has a direct impact on the emotional, physical and financial wellbeing of the COI’s client and family Your job is to educate the COI to do his job: bring the subject of extended care up with middle-age clients and open a discussion about those consequences

Let them know what causes the need for care That providing care over an extended period of years will make those who provide care as chronically ill as the person they are taking care of That the children will have no choice but to put aside their lives Tell the COI…

That if his or her client ever needs care, his life is not going to end… Someone else’s life is going to end.

Paying for care demands a reallocation of income, which has a direct impact on the retirement plan the COI put together Paying for that care will likely lead to an unintended invasion of the portfolio, which will adversely impact the Tax plan Succession plan Special needs plan Plan to assure the financial viability of a surviving spouse

Be prepared to deal with misconceptions and objections…

Assets don’t pay for care. Income pays for care.

Assuming that income is fully committed to expenses, where is the income going to come from to both pay for care and keep financial commitments, should your client need extended care? If the client uses assets to pay for care, it becomes disruptive to… A tax plan Plan to wait out a down market Plan to avoid a “death spiral”

The client may not live a long life or even if he does, may never need care but do you see how severe the consequences would be to his family? This is not a discussion about long-term care insurance. It’s a discussion about the consequences that not having a plan will have on the plan you put together for your client.

Then educate the COI about what LTCi really does…

It is a source of income that is no different than what life and DI insurance do… It funds a plan, the goal of which is to keep the client safe at home while protecting the emotional physical and financial wellbeing of those he loves Provides a predictable stream of income…

Is used to pay for care allowing those he loves to supervise rather than provide it That stream of income also… Gives the client’s children the second gift of life Keeps the siblings together by keeping them apart

Since care is covered, it eliminates the need to reallocate retirement income, which means the client can keep his financial commitments Ultimately, every plan the COI put together, executes properly LTCi keeps assets under management. Assets under management = fees LTCi acts as an intergenerational bridge between clients and their children