For many consumers, the magic price point for starting the conversation about long-term care insurance is $100 according to the director of the American Association for Long-Term Care Insurance (AALTCI).
"Every discretionary purchase has a magic price point. Get close to it and you'll be rewarded. Cross it, and few people will be interested and buy," explains Jesse Slome, director of AALTCI, the national long-term care insurance association. "It wasn't a coincidence that iTunes started charging 99-cents, below the magic one dollar price point. If they had started even at $1.29 their initial launch and sales would have been very different."
The long-term care insurance expert was sharing marketing ideas with designated long-term care insurance specialists.
"There is definitely a magic price point when speaking to consumers about the importance of long-term care planning and the role that insurance plays," Slome advocated. "The magic price point is $100-per-month and many insurance agents make the mistake of starting the discussion higher and then trying to down-sell if they sense price resistance."
Slome advised the insurance agents to recognize the importance of magic price points and to start the conversation with that in mind. "It's definitely possible to achieve that and still offer some long-term care insurance protection that is suitable for many," Slome points out.
According to the just published long-term care insurance cost analysis, a couple both age 55 could purchase a benefit pool of over $300,000 at age 85, the age when need for care is most likely. "The monthly cost would be $100-per-person," Slome notes. "Of course, if the couple wanted more coverage you can always increase their benefits but starting high and trying to peel back is not a viable way to offer this product I believe," he added.
The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning and helps consumers connect with knowledgeable professionals who are independent advisors. Consumers looking for local long-term care insurance cost comparisons should visit the Association's website at www.aaltci.org or can call the organization's national headquarters at 818-597-3227.
The American Association for Long-Term Care Insurance and the American Association for Medicare Supplement Insurance advocate for the importance of planning and support insurance professionals nationwide. Jesse Slome, founder and executive director of the organizations, is a leading consumer advocate and author of numerous consumer and professional guides focused on retirement and insurance planning that have been published by governmental agencies and private organizations.