Why Long Term Care Insurance is So Important to a Happy Retirement

Updated : Nov 11, 2019 in Articles

Why Long Term Care Insurance is So Important to a Happy Retirement


Hi everyone and welcome to this edition of
the Inspired by LTCI Specialists webinar series today we’ll be talking about why
long-term care insurance is so important for a happy retirement it’s really my
pleasure to have on the line today Tom Hegna many of you know Tom he’s out
there on social media he’s doing seminars virtually every day I
personally have read his book Paychecks and Playchecks about retirement
solutions for life and just a quick anecdote about that I’m reading about a
solution which he talked about in the book about legacy planning and leaving
an annuity or an IRA to your kids and then bequeathing that to future
generations and late last year when my grandmother passed away she actually
left our family an IRA and my what my dad did was he disclaimed it to me and I
disclaimed it to our kids so you know every year for the next 80 years my kids
are going to be getting a paycheck effectively from my grandmother with her
legacy in it so I thank you Tom for that for that strategy because it personally
helped my life but if you don’t know Tom he’s been around the long term
for the insurance industry for many years he was with New York Life and with
MetLife he served in the US Army and you know for me he’s really a mentor
because I learned a lot from him and on the annuity and on the long-term care
planning side real briefly I just want to share with you a little bit about
this series for those of you that are new we’re really trying to have people
on that are motivated for this mission to help more people get a long-term care
plan and whatever solutions you find to do that are very valuable but there are
so many people out there you know there’s 44 million people today
that are caring for a loved one for long-term care yet the expertise is
particularly harder to find today so you know we’d love to have guests on here to
share with us their tips about how to get in front of new clients new
prospects and we do record these sessions so if you want to listen to
this session again we’ll have that recording available for you on the Agent
Resource Center if you go to the www.ngl-essentialLTC.com website and you login you’ll see this icon on the home page and you can actually
access all of these recorded trainings Tom is also going to stay after his call
for a little bit to take your questions so please feel free to type in your
questions into the GoToWebinar question panel which will be taking at the end
here so without further ado let me go ahead I’m going to transition this over
so Tom can go ahead and share his screen and Tom why don’t you go ahead and kind
of kick it off here well thank you Marc and thank you all for attending thank
you for having me I’m a big fan of Marc’s as well and it’s kind of funny we were
talking in the in the pre room that you know as soon as he gave me this
invitation I get Brokers World and of course there’s Marc Glickman all over
Brokers World magazine and then in my email box I get George Grombacher’s
Money Savage and there’s Marc Glickman so I’m a big fan of yours as well Marc
so thank you all for for having me I think we’re going to have a fun time
this morning my asks today are very simple I would just ask that you don’t
multitask put away your phone put away your email take some notes between Marc
and I think we’re going to share some powerful information for you write down
any questions you have I’m not in a rush so we’ll stay and we’ll take any
questions that you have and and if you stay to the end as I always do my
webinars I will give a special opportunity so as Marc hinted I’ve
written out five books on retirement my first book is that book Paychecks and
Playchecks and I always tell people I’m a reluctant author never want to write a
book and dream writing a book it wasn’t on my bucket list so I’d I write a book
well here’s why because right now if your clients talked to 50 different
financial advisers and asked them how they’re supposed to retire they’re going
to get 50 different opinions but there aren’t 50 optimal ways to retire there’s
really one optimal way to retire and that’s not my opinion it’s based on
mathematical scientific and economic facts retirements been studied by PhDs
all over the world people like Dr. David Babel of Wharton Dr. Moshe Malevsky of
Toronto Dr. Menachem Yari of Israel most recently Dr. Robert C Merton a Nobel
Prize winner is published in the Harvard Business Review and so what I talk about
is really the math and science behind a successful retirement and long term
care plays a key role in fact Paychecks and Playchecks closes with four simple
steps to have a happy and successful retirement step number one they should
cover their basic living expenses with guaranteed lifetime income step number
two they should optimize the rest of their portfolio to protect themselves
against inflation step number three they must have a plan for long-term care no
retirement plan is complete without a plan for long-term care and step number
four the most efficient way to pass wealth to children grandchildren and
charities is with life insurance well if I had to summarize the whole book I’d
kind of summarized it this way what day the week just spend the most money what
they do each go golf and you go to Home Depot get your nails done get your hair
done well for most people that day is Saturday well guess what the day you
retire every day is Saturday and I have learned that firsthand because I did a
trial retirement this summer I’d been retired for last three or four months
now I’m going back on the road next week but I’ve been retired for about three or
four months I’ve been living the retired lifestyle in golf and I’ve been playing
tennis we’ve been out boating doing just fun
stuff but you want to know what every day is Saturday and you do spend the
most money and so we’ll go up for like a happy hour that I think is gonna cost me
eight bucks for a happy hour and all of a sudden it’s an extended happy hour and
then some friends show up and now it’s dinner oh yeah put that on my tab and
all of a sudden two hundred and eighty dollars not eight dollars and so this
happens like every day in retirement it’s crazy and so every day is Saturday
the other thing is when I gave my Paychecks and Playchecks presentation
down in San Diego about five years ago there was some of there from PBS public
television and they said Tom we need to take this information out to the general
public because they’re not getting this from the other talking heads on TV but
we don’t think they’re gonna understand this paycheck and play check thing we
would need a simpler title so I wrote another book it’s called don’t worry
retire happy because I mean everybody can understand that and this has now
played on PBS and over 80 million homes in the US and Canada and one of the key
steps is long-term care so I talked to 80 million people on the importance of
long-term care but here are the seven simple steps and you say seven I thought
you said there were four yeah well that was Paychecks and Playchecks this was
TV we had to add a few okay and these are good at this
so step number one they gotta have a plan how can they get anywhere if they
don’t have a roadmap or a plan on how to get there and with this I say they’ve
got to work with a financial professional retirement is not a
do-it-yourself project look I do you know thousands of seminars and in my
seminars I say this I’m willing to bet you don’t do your own dental work in
your garage with your drill set and I don’t think you gotta be doing your own
retirement planning either step number two we need to teach them how to
understand and maximize their Social Security benefit see for most clients
Social Security’s the largest retirement ask that they have and yet people spend
more time planning their summer vacation then learning how to maximize those
valuable assets step number three they should consider a
hybrid retirement – many people are trying to retire too early they haven’t
saved enough money and we should encourage our clients to work a couple
of extra years even if it’s part-time it can increase their success in retirement
significantly step number four we’ve got to help them protect their savings from
inflation inflation is like a virus that gets worse over time this is where
stocks can fit mutual funds can fit realistic and fit they can build a
diversified portfolio that if we get inflation the portfolio goes up and
there’s more money to take out more money but they can also protect
themselves against inflation by ladder in their lifetime income annuities
that’s what I’ve done I own eleven income annuities I have some that start
when I’m sixty some that start when I’m 62 some that start when I’m 65 some that start when I’m 70 some that start when I’m 75 so I will have increasing
income for the rest of my life step number five is critical they must secure
more retirement income see a successful retirement is built on income not on
assets and most people are worried about their assets are not worried about their
income and it should be the other way around
but step number six is the one we’re going to talk about today they must have
a plan for long term care and I say any plan is better than no plan and Mark and
I will discuss that in a little while step number seven use your home equity
wisely for many of your clients their house is one largest assets they have
and I share you know in the book and in the videos some ways that they can
simply use their home equity and then I normally wrap up with the most efficient
way to pass wealth – to your spouse to your children your grandchildren to
charity is with life insurance so let’s let’s hit steps
one in step six because they both fully apply to what we’re talking about today
so step number one they got to have a plan The Hartford said those who plan
for retirement are three times more likely to be confident than those who
don’t who those who have not planned and the reasons are simple you know if
you’ve got a plan if you thought out what happens if I need a long-term what
happens if I have an unexpected long-term carry ban what happens if
something else happens you’ve got to have a plan that can
handle contingencies it’s not just what you want to happen but what are you
gonna do if something bad happens to you and and that’s all about planning the
other thing is I always tell people you know this is not a knowledge business
anymore everybody thinks is a knowledge business this is not a knowledge
business anymore you give me an iPad the internet 15 minutes I can figure out
anything I need to figure out this is knowing words business it’s a language
business it’s a questions business and it’s a
story’s business you want to increase your production work on your words work
on your language work on your questions work on your stories and that’s why I
think it’s so important to follow people like Marc because he’s got a lot of
those words I have some of those words that can help you and can fast-track you
now a couple questions you want to help people with right out the gate question
number one what do I need my retirement income to do but then maybe more
important what do I want my retirement income to do now what we need our
retirement income do for all of us is the same it needs to cover a basic
living expenses our food or housing or clothing ourself on our internet I call
that the paycheck and what math and science demands is that paycheck should
be covered with guaranteed lifetime income so that is not where stocks fit
that is now where bonds fit that is now a real-estate fits that’s where
guaranteed lifetime income fits to at least cover basic living expenses but
then what do I want my retirement income to do that’s the play check that’s to
travel that’s the cruises that’s the fun stuff and those other products fit fine
right there but here’s the problem many of your own clients are not fully
enjoying their retirements and you’ve all got clients like this they’re in
their 60s they’re in their 70s they got plenty of money many of them don’t even
touch it you know when I was an advisor I used to bust my clients I’d say wait a
minute now you told me when you retired you’re going to join the the country
Club you’re gonna buy a new boat you’re gonna go on a cruise you’re gonna see
the world have you done that yet you know many of your kinds will say no we
haven’t done that yet you know why because just in case interest rates are
so low you know the markets been so volatile Bitcoin just crashed they’re
living what I call a just-in-case retirement and here’s what it looks like
they don’t touch their money and they don’t touch their money and they don’t
touch their money and then they die when I was the money goes the kids whether it
gets do with it they join the country club they buy a new boat they go on a
cruise and they see the world look this is happening all over the country and
what I want to make clear today is this I want you and your clients to join the
country club I want you and your clients to see the world I do not want you and
your clients to live a just-in-case retirement okay so let’s get into the
meat of what we’re talking about step number six in don’t worry retire happy
as you must have a plan for long-term care
in fact Paychecks and Playchecks the title of the chapter was what’s your
plan what’s your plan because you’ve ever heard me speak before you know I
always brag about my plan my plan is I never have to go to a nursing home ever
I get to stay in my house for the rest of my life the nurse has to come to me
you know why because I got a plan I’ve got long-term care insurance with home
health care I get the stay in my house so when somebody tells you I don’t want
that nursing home insurance your answer are to be exactly this is anti nursing
home insurance this is stay-at-home insurance to sustain control insurance
so let’s get into this you know everybody thinks retirements going to be
30 or 40 years of golf tennis cruises and line dancing that is not true
you are going to go through three distinct phases in your retirement let
me show you your retirements really gonna look like the first phase your
retirement is what I call the go-go years now the go-go years you’re playing
golf you’re playing tennis you’re going on cruises you’re line dancing every day
it’s happy hour somewhere that’s the go-go years but make no mistake about it
the go-go years are gonna be followed by the slow go years now the slow go years
you can still do everything in the go-go you just don’t want to anymore
fact you don’t want to go downtown after 4:30 because dad can’t see when it’s
dark out that’s the slow go years and the slow go years are gonna be followed
by the no go years and the no go years of those years when you’re probably not
leaving the building that you’re leaving the building if you know what I’m
talking about so you got go-go’s this is what I’ve learned watching my
parents go through these phases I learned that the go-go years is all
about income not assets income which is why 100% of my purchases are going for
income in my gogo years now this income lasts me for the rest of my life all
right but what I’m trying to do is have the most amount of income during those
go-go years maybe from 60 to 75 or 60 to 80 those are kind of the go-go years
when you still can go on and do stuff the slow go years is all about long term
care any plan is better than no plan and we’re going to talk about that and the
No Go years that’s all about life insurance
now I’ve had people say Tom life insurance has nothing to do with
retirement wrong wrong wrong life insurance has everything to do with
retirement do you understand it’s a life insurance you bring into retirement that
gives you the license to spend your money you want to know I so many of your
clients are miserable in retirement because in the back of their mind they
think they got to leave their kids some money oh we gotta make some money to
Johnny and Susie we gotta leave some money Johnny and Susie
so they deny themselves their retirement to leave money their kids I tell people
every seminar don’t leave your kids any money I want
you to spend all of your money every last nickel I want you to spend every
last nickel I want you to write a check to the Undertaker and it should bounce
okay that’s what I want you to do is I want you to leave your kids life
insurance let me use me as an example so we got four kids so one day we’re
sitting around saying hey how much we leave to the kids I don’t know what do
you think I said well if we bought a 1 million dollar second-to-die life
insurance policy name the four kids beneficiary when we’re both gone they’re
gonna get a million bucks tax-free that’s two hundred fifty thousand a
piece tax-free let’s start there so we bought our 1 million dollar second-to-die
life insurance policy naming for kids beneficiary that policy is completely
paid up do you know what the total cost that policy was $150,000 so now think
about that for 15 cents on the dollar we get to transfer a million bucks tax-free
to our kids hey who gets to spend the rest of money
we do I want you to spend your money I want you to leave your kids life
insurance so let me go into why questions are so important then we’re
gonna get into long-term care questions and we’re gonna get into all the meat of
the long-term care questions are important because asking questions
avoids arguments I don’t know how many times you got in an argument
with a with a client but it doesn’t end well
and it happened because you said something very strong on one side and
they they had an opinion very strong on the other side see your opinion really
doesn’t matter ask them what their opinion is don’t get into arguments just
ask questions ask questions asking questions helps you avoid talking too
much I was a manager too and I would take new advisors out on an appointment
and guess what new advisors do they talk and talk and talk oh this policy does
this and it does this and it slices and it dices oh and it has this to stop
talking start listening ask more questions triple your questions you’ll
triple your production so telling is not selling telling is not selling listening
is selling asking yourself asking questions helps a person where could you
recognize what they really want it crystallizes their thinking it becomes
their idea asking questions helps you get to the key issues faster and when
you ask questions it shows you respect their opinions and they’re gonna now
respect your opinions when it comes time at the closing interview okay so in
between those two books I wrote another book retirement income master secrets of
the pros this one is very different so Paychecks and Playchecks is the math
and science behind a successful retirement it’s my words my language my
stories don’t worry retire happy is the PBS special it’s broader it covers wider
area of stuff this one was very different what I did with this book is I
went around the country I found 14 top producers most these people are top of
the table producers and each chapter is their story
what do they do what do they say what are their questions if you’re looking
for a book of questions this book is loaded with powerful questions so let’s
get into some long-term care questions before you get into your presentation
why don’t you say hey tell me about your understanding of long-term care
insurance and how it works wouldn’t you want to know what they what
they’re thinking and what they what they know about the product before you make
your presentation ask him this have you ever had a friend or relative that
needed long-term care that is a powerful question now Marc I know your your
grandparents need long-term care both of my parents needed long-term care so it
becomes very personal if they’ve had somebody that has gone through it you
know what is your philosophy about long term
care insurance where did you learn about long term care insurance is home health
care important to you how much coverage should you have those would be some of
the questions that I would ask but Marc I’m gonna turn to you now for just a
second because in this Brokers World magazine you put some great questions in
there and one of your questions was what do you think other people are paying for
long-term care insurance coverage tell tell me why that’s a very powerful
question I mean I think I know but I want to hear what why that’s a great
question absolutely it gets to the heart of why
somebody is not going forward with the plan the number one reason people don’t
get long-term care insurance is because they think it’s too expensive or they
think it’s going to become too expensive so when you help them identify what it
could cost and it can be very affordable as those of you that know the NGL
product for example you can get to very low price points once they you kind of
take away that fear factor that there’s an entry-level point where they can get
a plan it allows you to have the conversation and guess what when you
show the cost of care they’ll usually buy more and they’ll want to benchmark
it based on what other people are paying so that’s a great question to ask and
then you know what percent of your income would you be comfortable to spend
after you’ve covered all your basic living expenses that was another
question that you had in there yeah and the reason why you want to ask this
question is as Tom mentioned this is an income problem for a lot of people and
they want to actually use their income to pay for it they want to do maybe a
lifetime a recurring premium so if you understand what percentage of income
they’re comfortable spending and what percentage of income that might protect
in retirement you know similar to what you might see if you’re familiar with
disability income you’re actually going to get to a comfortable price target and
you’re not going to have to feel like you’re asking them what do they want to
pay you’re just kind of using a kind of a mathematical benchmark to say this is
what someone in your income bracket might spend I love this one what asset
might be repositioned to provide coverage longer or better because Marc
as you know annuities that had let’s say somebody bought annuity 20 years ago
never touched it it’s got all this gained in there that’s taxable but that
can be 1035 exchanged over to pay for long-term care insurance
and then I’m reading this Brokers World and you were talking about how HSAs can
can pay for long-term care so talk about that for a minute because I think this
is something that even pretty experienced advisors are still learning
some of this stuff absolutely you know when you identify funding sources it
leads to a very positive conversation people like to talk about their
successes in life and he leads to either talking about okay yes I have this HSA
which has funds in it did you know you could use that to pay for a long-term
care insurance premiums pre-tax and still get the benefits tax-free or for
the asset repositioning when you start to identify assets let’s say you have a
non-qualified deferred annuity did you know you could use that money to use it
to buy a single premium long-term care policy and all the gains actually get
transitioned to pay for the premium instead of getting taxed on those gains
that leads to that asset repositioning sale and you see that a lot with hybrid
style products as well where you’re moving money from a you know a low
earning CD or savings vehicle and you’re using it to get significant long-term
clear benefits so it’s really about if you identify the right funding source it
leads you to a comfortable price point which then again get somebody to put a
plan into place yeah I think it’s so critical and they don’t have to write a
check out of their checkbook and they can say oh you mean I can just move this
over here oh you mean this this old HSA that you’ve been sitting here I can use
that oh that’s awesome and so when you can find that funding source you really
can make the sale a lot smoother and then how much do you pay for your other
insurance covers your car insurance your homeowners insurance your life insurance
I think that’s a great question tell me a little bit about that one
yeah and Tom I know you’re going to talk a little bit about this I think later
but you know people think about long term care and they say it’s use it or
lose it well why are you buying auto insurance and homeowners insurance right
you know those coverages you don’t expect to get benefits on in fact you
don’t want to get long-term care benefits you don’t want to be
chronically ill so if you don’t have the event you’re actually happy if you do have
the event you want to get as much protection as possible
so really the mentality out there that they have to get a return on their
insurance is kind of a strange mentality it’s a protection product first and
foremost so if you under if they understand what they’re paying for other
coverages it gets you to a comfortable price
point and it also gets them to think about why do they own these other
insurances and where long-term care fits for their protection yeah so the whole
point of this part of the presentation is to get you thinking to ask more
questions it’s not just oh my policy does this it does this it does this
exist the the power in the sale is asking them and getting them to talk in
and one of the best homework assignments I could give you is to watch some
Columbo movies have you ever watched Columbo he hardly says anything yet Oh
tell me about the time unit and he asked questions and by the time he’s done he
makes everybody so uncomfortable they doubt what he’s doing but he doesn’t say
anything he just asked questions and so that’s what I wanted to get on this
section the presentation is how powerful questions are now Marc no matter how good
we are making our presentation and and and no matter how good we know the
product there are gonna be some objections clients have objections so
let me just talk a little bit about objections and then we’ll get into the
common long-term care objections which i think is kind of the meat of the
presentation so why do clients have objections well it might be a lack of
knowledge I just don’t need it it could be a specific concern all that cost
those long-term care policies just too expensive it could be a false objection
they they want something else but they won’t say it this happens all the time
and I will tell you it happens to you all the time you walk into Men’s
Warehouse and somebody says hey may I help you
and what do you say no I’m just looking well you’re not just looking you went in
there for looking for something and the good salespeople if you notice they say
well that’s great we have a sale on right now our suits right here are 30%
off we got ties at 50% off are you looking
for shoes or ties or suit can help me out and they just keep going and that
would be one of my best piece of advice to two advisers most objections are
false objections do not get riled by them just keep going just like the
person at Men’s Wearhouse or Nordstrom’s rack when you’re looking for shoes it
could be a perception issue I don’t trust insurance companies they’re not
say and they may not be clear about their interest is just not a priority so
here are some techniques that I think will help you if you get objections
first of all thank them if they’re objecting to you it’s because they’re
listening right in there they’re still engaged empathy
ties with them acknowledge and say you know what I hear that often or you know
what before I got in this business I believe the exact same thing may I ask
why may I ask why that’s a powerful question because you want to dig deeper
because as I said many of the first objections are false objections if they
are objecting to you they don’t see the value see you might think you showed
them the value they didn’t see it so this would be a great time to say let’s
go back one more time I want to show you why this is so important for you and
your family because remember long-term care is really not about them it’s about
their family let me show you why this is so powerful for your family and show
them the value use third party references and client references look
they do that to you all the time well Susie Arman says this Dave Ramsey
says this Ken Fisher says this oh yeah well look at what Marc Glickman said in
the Brokers World look what Tom Hegna says in Paychecks and Playchecks look
what Dr. David Babel says and find powerful third party references that
support which what you’re presenting so here’s some basic ways to handle
objections number one know your stuff you got to know your stuff better than
anybody else knows you stop and then not only that you got to know your
competitor stuff I’ll give you a quick example when I was a brand new advisor I
was an advisor for MetLife and I was a new advisor didn’t know anybody I’m
working the new home market I’m selling a bunch of term insurance that’s what
new advisors typically do and I was getting my clock cleaned by New York
Life they always had a lower premium on term insurance and I was getting my
clock cleaned I’m just so frustrated so finally got a copy of of that whole
illustration of policy and I went through and I found out oh they had a
one-year teaser rate after that they raised their premium a lot and over five
years or ten years my premium was lower than theirs once I learned how to beat
that main competitor I didn’t lose another case to them so
you got to know your stuff know your client and give a very powerful
presentation answer the objection in your presentation I do it all the time I
talk about Ken Fisher my presentation all the time I talk about the fees all
the time so if you are getting a long term care insurance is too expensive you
would need to put that in your presentation you know many people
believe that long term care insurance is very expensive let me show you how it’s
changed in the last five here let me show you how it’s very affordable you’ve
got to put the object into your presentation that is the very
best way to answer an objection is answer before it comes up you can ignore
the objection say that’s okay I don’t I don’t believe insurance
company that’s okay let me show you why this is so important that’s what the
Men’s Wearhouse or the Nordstrom’s rack lady did when you came in to look at
shoes and she said and you said you’re just looking she said that’s great we
got a sale on these shoes over here oh these are my favorite just come over
here to take a look at that’s what a good salesperson does is they ignore
that objection because it was a false objection anyway defer the objections
say that’s a great point I’m coming to that in two pages I’ll get right to that
sometimes you got to handle the objection and it won’t really be an
objection if you focus on helping instead of selling if you’re just there
to sell a long-term care product then it’s an objection but if you’re trying
to help them retire and retire with dignity help them you know plan for what
their family can do to help them focus on helping instead of selling then you
just you’re it’s like you know I was in the military and we do these obstacle
courses the only way you get over the obstacle course is somebody has to boost
you up and you have to boost them then you pull them up it’s all about teamwork
and when you’re helping them it’s like you’re just boosting them over a little
it’s like a hurdle and you’re just helping them over the hurdle it’s no big
deal show them the value again if they’re
objecting they don’t not see the value you may think they did but they did not
see it and use third party references in client references so let’s get into what
my favorite part the long-term care objections people say I won’t need
long-term care insurance my daddy said this to me that he did he they didn’t
want it they said I won’t need it it’s too expensive I’ll never need it you
know it’s an insurance company ripoff my dad said all this well here are the
facts the odds of your house burning down between now the day or die or
less than three out of a hundred but you got a homeowner’s insurance the odds you
told in your car between now the day you die are less than 18 out of a hundred
you got car insurance but the odds of you needing some long-term care are 72
out of a hundred and you’re gonna let that one go I mean
seriously look we’ve got to show people that this is something that they’ve got
to have and both my parents needed long-term care I’ve taken the 23andme
you know the the gene testing and I’ve got some of those same genes so I’m
likely gonna need some long-term care and and we’ve just got to tell people
look this is a serious thing as people live longer and
and longer it’s more likely they are going to need it and Marc please chime
in on this and I alleged time in and every one of them because you you have a
lot of experience in this area absolutely and I know Tom that you have
you know a lifetime benefit long term care policy and you kind of follow
practice what you preach here too I will say that what’s emerging is a really
important thing beyond the stats is what happens if let’s say it does happen to
you let’s say you’ve never think you’re going to need it but what happens to your family if you end up needing a long-term care event
remember I mentioned the 44 million caregivers that’s one out of every six
adults is actually you know a family caregiver an unpaid caregiver so this is
an epidemic out there so when you talk about this also talk about the
consequences on the family what do you talk about when you sell life insurance
or disability income right life insurance is not for the person who buys
it right by definition it’s really for the family it’s the same thing with long
term care it’s the same conversation with long term care so make sure you
also mention that too – Tom Marc I’m back sorry about
that yeah something happened I we went into the stratosphere okay
number two it’s too expensive I always tell people if you think long-term care insurance is expensive you ought to try not having it
okay I made my parents buy long-term care insurance 16 years ago they didn’t
want to it’s too expensive we’ll never need it it’s an insurance company ripoff
else they said all that I made them buy it
they were both in assisted-living $10,000 a month $10,000 a month do you
understand there were years my dad never made $10,000 a year $10,000 a month I
can’t imagine what they would have done if they didn’t have those policies and
here’s the deal my parents didn’t buy great policies I
would have never bought those policies they didn’t buy them for me they bought
them from some guy in Minnesota they weren’t you know really super great
policies but they gave them each about two hundred and fifty thousand dollars of
coverage well guess what that lasted for the rest of my dad’s life my mom’s is
going to run out here shortly but because they had that for the last
you know six five six seven years we’ve been able to save their Social Security
their pensions all that money was been able to save my mom will be fine but she
wouldn’t have been fine if they hadn’t had those policies so Marc maybe you
want to chime in on this one too yeah you know what I’m finding is that when
you talk about the amount of benefits you know Tom just mentioned 250,000 of
benefits in our world that’s actually on the lower end side you know we’re offering
policies that have a million dollars of benefits you need to talk about the
amount of benefits relative to what the cost is which might be a few hundred
dollars a month if you’ve ever used the Benefit Buddy software the NGL software
it actually shows you kind of that cost value proposition it’s a very powerful
tool because it gets people thinking about Wow why does this look so good
it doesn’t sound too expensive again when you’re showing those total benefits
and again the cost of care helps you understand why those benefits are so
important you know I I pulled this one out of the archives Marc when I was at
when I was at New York Life you know I was in charge of their retirement income
push but I was also in charge of their long term care insurance wholesalers and
we tried to do some things to combine the two and and so what we did was we
found a way to to basically have almost like a single premium long term care
policy by putting a lump sum into an immediate annuity how much income that
would provide to pay for a long term care premium and of course the premiums
were not guaranteed or anything but I think if if I’m correct you have an
actual single premium long-term care product is that correct yeah so you
could put let’s say $100,000 guaranteed premium into a long-term care product
and maybe get a million or two million or even more coverage especially for
people that are younger with the inflation protection at the point in
time and when they need it most so you can really you know use that power of
that insurance leverage so to speak to get the most benefits there and that had
some guarantees on the premium as well didn’t it right yeah so if you prepay
the premiums of course a single premium is a guaranteed premium right so people
say oh I’m worried about long-term care rate increases well did you know you
could prepay your premium and if you do that then you don’t have to worry about
it if you do a 10-Pay once you pay your 10th premium, the premiums
are guaranteed after that point in time so you’re really limiting the risk and
handling an objection that’s out there but allowing you to show the value
proposition and doing something similar to what you’re seeing in the hybrid side
with the asset repositioning at the same time well my wife would take care of me
I hear this all the time well my wife would take care of me and I say oh
really ok sir I need you to lay down the floor right here now ma’am just come on
over here just pick him up and carry him downstairs put them in the car for me
I’ll wait well I can’t do that if you can’t do that when you’re 67 how the
heck you’re gonna do that when you’re 87 that’s long-term care I don’t think
people realize how much physical work long-term care really is and there been
studies that show that that that people who are giving long-term care that their
life expectancy goes down because it just drains them physically and mentally
and Marc maybe you have some comments on this one as well yeah we think about
those 44 million caregivers about 60% of them are the kids and the reason of
course is the kids is because the spouse like you said is going to be of a
similar age and there’s there’s hardly any expectation that they’re going to be
able to perform those functions there are about 20% of those caregivers that
are spouses but can you imagine somebody like you said 87 years old trying to
shower trying to pick up somebody that’s 200 plus pounds just an unreasonable
expectations when people say that as a denial that’s right they really don’t
understand the process and what’s involved at point of care and then you
know also the dignity that do you really want to have your daughter you know
giving you a shower do you really want to have your daughter helping you go to
the bathroom or your son I mean this is these are real-world real-life things
and it’s uncomfortable to talk about it but I mean the it’s the real world out
there yeah actually you mentioned one more there Tom which i think is really
powerful I heard this from somebody that was a first-generation American so they
came from another country and they said you know why did you come to this
country well I wanted to provide a better life for my family so you’re
training your kids they’re really well educated they’re becoming lawyers and
doctors and you want them to quit their job when you need care to take care of
you does that make any sense so if you really ask those questions you
understand what’s important to somebody it’s going to lead you to a reason why
they should be planning for this I hear this
one too, well Tom my long-term care plans hanging the rack of that pickup truck
right there yeah they got a gun rack and they’re gonna kill themselves let me
tell you the nursing homes are literally overflowing overflowing with
all these people who said they’re gonna kill themselves you know why because
they all forget they all forget this is a common objection it is a false
objection they’re not going to kill themselves
the nursing homes are loaded with people who said that they were and I don’t know
Marc if you have anything on this one yeah and there’s a whole host of
different scenarios to different objections which are very similar to
this but it’s just about denial it’s just about this thought process I need
to come up with an objection excuse as to why I’m not going to do this plan
just work with through them you don’t have to even be selling them insurance
just let me help you put together a long-term care plan even if they say
they’re going to self fund great let’s talk about your self funding plan I will
bet you that once you start talking about that and they start putting
together a plan it will lead to a conversation is there a better way to
finance this plan and you’ll find something in the insurance world that
can even hedge what they were planning to do but get them to do a plan first
because that’s the key exactly and then of course if I don’t use it I lose all
that money well you know look there’s ways around this one too as you know
Marc there’s there’s policies that have Return of Premium that if they don’t
use it when they die their family gets all the money back but but that’s where
I think some of these hybrid plans come in because I think a lot of people are
limited on their funding they don’t have enough money to have an emergency fund
to have life insurance have long term care there but all this stuff people say
oh I’m Insurance poor so that’s where I think where one of these hybrid plans can come
in because it does three things if you if you use a life insurance policy with
a good long-term care Rider it kind of works like this they take a hundred
thousand that they had over a Bank of America that was earning probably less
than 1% taxable by the way and they just move it over to here now most of these
policies have a way to get the money some have a full money-back guarantee
some have limits but I mean you have that hundred thousand available if you
need it you can get to it okay if you don’t need
it and you die you just draw a bigger circle so this was I call this the three
circles presentation this is what I used to do I
draw a circle here’s your hundred thousand at Bank of America if you don’t
need that I draw a bigger circle and you die it’s gonna almost double there’s
about a hundred ninety six thousand dollar death benefit and then I draw
another circle but what if you need long-term care there’s about two hundred
and seventy thousand dollars of benefit there and even if you use it all there’s
a residual death benefit so it does it does really three things it’s an
emergency fund it’s a it’s a guaranteed death benefit if they if they don’t ever
use it and it provides money for long-term care and I know Marc you
use these policies as well so kind of tell me some of it from from your point
of view and the premiums are guaranteed never to go up that’s another big thing
so kind of tell me your your take on these these hybrid policies I believe
that every long-term care agent should have both traditional plans and hybrid
style plans in their repertoire with ngl of course you have a return of premium
rider which provides 100% Return of Premium (upon death) if they don’t use long term care
kind of like what you see here but it doesn’t really matter which product you
use you just have to have both tools available to you and here’s the reason
why about half of people like the idea of getting this i money back because
they never expected to have long-term care in the first place it’s almost like
the mentality twenty years ago from someone who didn’t buy a long-term care
policy at all you can really address that today so it’s really important to
have both sides I will tell you that more common than not I would say the
majority of the time I run into long-term care agents and they say I
only believe in traditional long-term care or I run into agents say I only
believe in hybrid plans and usually it’s because of their own personal experience
and biases with you know whatever happened with that product maybe they
had a rate increase maybe they’ve seen you know the life insurance side maybe
they’ve seen the long term care benefits play out whatever that bias might be
don’t have that bias when you ask questions of your clients they’re going
to lead you in the direction of one side or the other and you’re going to know
which is the best fit for their plan and that’s the key get the client what they
really want and what they need and I mean some of the things they can have
tax deferred accumulation of the cash there’s a money-back guarantee on that
policy they can have access to you know the policies cash you’ve needed is
flexible coverage so I mean these types of policies can solve multiple needs
with just one policy and I think for some people these are
exactly the best policies for them because they’re not ever going to be
able to just buy a regular long term care policy well the government will
take care of me oh yeah that’s what I’m working my whole life I’m saving I’m
investing I’m trying to do everything so that then I can spend all my money down
become destitute and go on to welfare which is Medicaid you know and and you
know I used to do seminars I don’t do this as much anymore because it kind of
can rub people the wrong way but I’d say look to your left look to your right
that’s Medicaid you’re saying you’re not going to take care of
yourself but you expect the person on the left and the person on the right to
take care of you that’s Medicaid and so I mean there’s a whole moral issue here
that we shouldn’t be just dumping the care of everybody on everybody else that
we should each have some personal responsibility to take care of ourselves
but Marc you probably have some powerful words as well in on this one
yeah absolutely I will say that long-term care today traditional
long-term care has Long-Term Care Partnership so even if they do have the
mentality that okay the government will take care of me you actually have a
solution for that person too you could buy a two or three-year long-term care
insurance plan and when they exhaust their benefit if they exhaust their
benefits that have an extended long-term care event the government allows you to
keep your assets and still qualify for Medicaid so regardless what the
mentality is of course most people don’t want to you know they want to have
options they don’t necessarily want to be on Medicaid they want to be able to
get a home health care you know they want to keep their their options open
but if they do have this mentality there’s even solutions that partner with
Medicaid and you can get them a plan that way too. All right well look I’m just
gonna wrap up we’re going to take questions here I’ve got I’ve just got a
few ideas for people I always say you know what next if you don’t do something
with this information in the next 48 hours you’re going to forget it we are
recording it so you’ll be able to come back but I would encourage you to sign
up for my newsletter it is free all right my most popular newsletter ever
was this one why Ken Fisher really loves annuities and you should too if you ever
hear that your clients a Ken Fisher hates annuities you can just google Ken
Fisher loves annuities and I explain why he loves him he’s getting rich off of
him but he will hate him someday my second most popular one was the 60/40
portfolio is dead long life insurance and annuities and I just
simply said that the average client out there is invested 60% stock 40% bonds
and it might be more appropriate for your younger clients to to remove some
of the bonds because bonds aren’t doing anything and they have huge interest
rate risk to move that into permanent life insurance and for your older
clients 60 and above if they would just move 40 percent or that some are all
their bond funds into lifetime income annuities they’re gonna see their
returns go up and their risks go down and Forbes magazine loved it and they
ended up putting it in Forbes magazine so you can Google Tom Hegna Forbes if
you go to my website you’re gonna find out I got all kinds of resources for you
books audio books DVDs white papers online
training coaching what about my slide decks I think I got some of the best
slide decks in the entire industry and they’re all available for purchase on my
website I will tell you this I’m a big believer in audio books and DVDs and
here’s why when I was a brand-new agent I was recruited by MetLife I was a
company commander in the US Army 7th Infantry Division light I didn’t know
anything about insurance and I said I got recruited by MetLife and said well
that sounds interesting I’m gonna go work but I didn’t want to stay in
California I moved to Arizona where I didn’t know a single person not one
single person I made million dollar roundtable my first year now how do you
do that if you don’t know nothing about nothing and you don’t know any people
it’s because every morning when I woke up I watched VHS tapes of the Kinder
brothers I learned their words their language
their stories that then became my words my language my stories I went to the
MDRT site I ordered the MDRT tapes for the top producers in the world and when
I was driving from appointment to appointment I was listening to the top
producers I learned their secrets and I’m telling you this fast tracked me
right to the top and I can do the same for you in this retirement market you’re
not gonna get my words my language my questions my stars by attending a you
know 45 minute a webinar you know why does the army have me take
apart and put together my weapon five thousand times you know I think I
figured it out after six or eight times but after six or eight times you know it
in your head after five thousand times you know it in your heart and what you
got to do is it’s repetition that gets you really smart people are lining with
my brand they’re putting their name and picture on the cover of my book so it
still says Paychecks and Playchecks by Tom Hegna but
then it says with contributions from your name you could put your picture on
the back the whole back cover you explain why long-term care and
retirement so important to you one of the inside sleeps about me one of the
inside sleeves about you and you can do that with either of Paychecks and Playchecks or don’t worry retire happy top of the table advisors around the world
are doing this this was a Northwestern Mutual agent he takes the don’t worry
retire happy DVD puts it in a bucket of popcorn with two cokes in candy he makes
movie nights he lets me to show the clients why they need life insurance
annuities long term care he lets me make the presentation they come in there
buying life insurance annuities long-term care and then he says hey
bring that DVD back because I need to send it out to some other people hey who
do I need to send this to and they give him three or four names and he makes
movie night buckets for them and he rotates this around to eat
we literally sell these DVDs buy the case that many companies have done this
it works all over the country when I was flying a couple weeks ago I saw
something on LinkedIn and it said pros have coaches amateurs don’t think about
that pros have coaches amateurs don’t it’s football season and I don’t know
who your favorite football team is but guess what they train every single day
sometimes they do double sometimes do triple they got multiple coaches why do
we think in this business that if we want to be the very best we don’t need
daily training I would tell you if you train daily if you spend 15 minutes a
day with me or with Marc or with a mentor you’re gonna get a lot better
over a few months period of time so I put together an online training and
coaching program that does three things number one training over ten hours of my
brain are online all my words my language my stories my questions all of
that’s online sorted by life insurance annuities long term care Social Security
sales ideas combination sales ideas it takes 10,000 hours to become a master at
anything okay I’m presented for over 10,000 hours
you got to spend time you got to invest your time and I cannot emphasize enough
how you can get fast-tracked look I don’t know how much I spent on those VHS
tapes or those MDRT tapes I probably spent three four or $500 they made me
millions and millions of dollars I have helped create multiple millionaires in
this in this insurance industry thousands tens of thousands probably of
millionaires in this business so I know training works coaching what if you
could bring me on every appointment you think we’d close a few more cases I’ve
got a client coach built in here it’s interactive you go to client coach a
video me pops up it says tell me about this appointment is your client single
or married single how does this person 72 once you hit those two buttons a
video he pops up okay so you’re meeting with a 72 year old widow here’s gonna be
her key concerns here’s a product you’re gonna want to use here’s gonna be the
question should ask her here’s gonna be her objections here’s how I would handle
objections I can coach you before we go in the appointment the next day you’re
going on appointment of 55 or 45 year old couple you get married 45 video me
pops up I coach you very differently and the last thing is client education who
is educating your clients Suze Orman Dave Ramsey Ken Fisher or would you rather have me
educate them you can rotate an unlimited number of clients and prospects through
this site and we even put the don’t worry retire happy video in there
because some people don’t have DVDs you can just send them a link and they can
watch it on their smart TV now I normally charge $97 a month for that
online training coaching and client education and it’s a steel at that
but because Marc brought me on here if you want to you can take advantage of
this special offer you can text happy to seven seven three seven seven zero four
three seven seven at least write that phone number down because you may want
it in the future text happy there you’ll get all through
my books all through my audiobooks the DVD and my updated social security guide
with all the new Social Security Medicare information we sell that for
over three hundred bucks on my website you can get that for $150 but I will
also pay for the first month of that $97 a month so you can try it before you buy
it there’s no obligation you can quit whenever you want but I would tell you
if you would just spend the next two or three or four months with me every
single day I promise you I promise you I can take your production to another
level so that’s available to you I’ll wrap up the portion and then we’ll take
some questions I can’t tell you if the market is going to go up or if the
market is going to go down I don’t know are you gonna have inflation or gonna
deflation I don’t know but I do know this if you have a plan if you work a
little longer save a little more if you cover your basic living expenses with
guaranteed lifetime income and optimize the rest your portfolio to protect
yourself against inflation if you maximize your social security benefits
have a plan for long-term care use your home equity wisely and you
life insurance is the most efficient way to pass well to children grandchildren
and charities I do know this each and every one of your clients can have a
happy and successful retirement that’s based in math and science not based on
some stockbrokers opinion and with that I think we are ready for questions so
mark I’ll turn it back over to you and I think you got more waiting in the wings
yeah and Lawrence will answer the questions thanks so much Tom by the
way for being on here other resources just one more thing one more plug I’ll
give for Tom is I found out about Tom you know I searched on YouTube for Tom
Hegna and I watched his videos you know I just watched them in a sequence so get
to know his techniques here and I think you’ll be a lot more successful

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