Long-term-care insurance is viewed by many as a senior product, with the average purchaser at age 60, according to America’s Health Insurance Plans.
But one advisor is finding success selling LTCi to millennials who want to make sure their parents have access to care if they need it.
“I have five kids in the millennial generation, so I learn from them,” said Brian Starr, a life and LTCi advisor in Phoenix. Starr’s clients come from all over Arizona, and although he has plenty of clients in the traditional age range for purchasing LTCi, he is noticing a trend where the younger generation is becoming more involved in purchasing the product.
One way in which Starr reaches millennial buyers is through using an e-suite for LTCi developed by Genworth.
“Anything involving younger buyers has to be internet-based,” he said. “Millennials want quick responses, they want information, they want it now.”
Younger buyers also place a great deal of value on doing business with someone who is recommended by others, Starr said.
He said he is finding interest in buying LTCi among millennials who are children of immigrants.
“There’s a different cultural attitude among this group,” he said. “They are a very close-knit group. What I’m seeing from this generation is that they’re very concerned, caring people but they’re all over the place. They’re not like the earlier generations who all stayed close to home. These millennials really care about their family and they want to take care of their family, but they don’t plan on staying there and doing it. So they are very big on making sure their parents are taken care of.”
Using the e-suite enables Starr to send out product information online, as well as build a product and quote a price without having to sit face-to-face with his clients.
“Right now, I’m working with three different groups where the kids are all in different states and the parents are in Arizona. It is a different challenge versus me seeing someone who is a baby boomer and writing them their policy – that’s a go in and do the interview and kind of connect. And it’s a one or two visits kind of thing.
“With the millennials, this is more of a process,” he said. “They have their own time frame in which they want to get this done. And it’s not necessarily so quick. They want to gather the information; they want to approve it. And then they want to have the parents sign up for it. It’s kind of like they’re in charge of making sure all the right information is in everyone’s hands.”
A Trend In The Making
Starr believes making the LTCi sale through the younger generation will become more of a trend as millennials realize their parents are likely to need help at some point in their lives.
“Especially with where the economy has gone, there are lot of parents who have not done so well with saving for retirement. And the kids are coming up and maybe are doing pretty well and they want to make sure the parents are in a good place, even if they can’t be there right with them for them.”
Using the online process, Starr gets parents and their far-flung children together using Gotomeeting or Quotit. During their virtual meeting, he will quote and build the product in front of them, and then complete the application. The parents’ signatures can be accepted electronically, and the medical exam can be scheduled.
“They love that it isn’t an old-school paper app and it isn’t going to take weeks to get it moving. When they’re ready to go, they want to get it done. They’ve done their homework, they’re happy with what they’re doing, they want to get it done now,” he said.
“It’s hard enough to meet with two people, let alone with three or four all at one time. When they’re ready to go with it, they’re ready – they say, ‘OK, we give you permission mom, you do this, we’re good with it.’ And it’s an interesting dynamic.”
Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents’ association and was an award-winning newspaper reporter and editor. Contact her at Susan.Rupe@innfeedback.com. Follow her on Twitter @INNsusan.
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