Featured Sales Idea


Partner With Accountants

The following comes from Long-Term Care Insurance Sales Strategies magazine's special focus on Partnering With Accountants (Vol. 9, No. 3) that includes a copy of the new Accountant's Guide to Long-Term Care Insurance. Sales Strategies magazine is a benefit of membership in the American Association for Long-Term Care Insurance.

One accountant who grasps the value of long-term care insurance can easily direct $100,000 in annual premium your way. You don't need too many to be very busy all year, shares Henrick Larsen, MBA, CLTC, Vice President, Marketing for Advanced Resources Marketing in Allston, MA.

Accountants are a phenomenal source of referrals because they generally have the trust of their clients and they get to see their clients on a regular basis, typically around tax time.

Add to this the fact that more accountants are getting into discussing and counseling clients as opposed to just filing tax returns because they don't want to compete with H&R Block and software programs.

Finally, seasoned accountants who have built a base of clientele are dealing with people who are the prime market for long-term care insurance. They have many clients in their late 40s and early 50s and business owners who have graduated from a tax preparer to an accountant.

What Larsen has found is that having a few accountants who are proponents of long-term care insurance will result in a huge number of referrals on a steady basis.



When you deliver your next LTC insurance policy, talk to the client about the tax-qualified nature of that policy. Start by saying something like; "you know down the road these policies could be eligible for an above-the-line tax deduction. I don't think it will happen, but it could and would it make sense for your accountant to know about this transaction and to have a copy of the information in his or her files."



Get the name, address and phone number and I call the accountant. Typically you'll be speaking to the receptionist, and explain that you are calling about a mutual client. The accountant will almost always take the call or call back.

Simply say that their client purchased long-term care insurance protection from me and that when you delivered the policy he (or she) thought it would be a good idea if you were made aware of this transaction and then you had a record of exactly what was done.

Explain that you're going to include a tax guide (see the American Association for Long-Term care Insurance's Guide for Accountants) and then call in about a week to see if they have any questions about their client's policy or the tax information you sent them.

Most of them won't talk to you on the second call. But a few will. And, a few of those will see you for coffee at eight o'clock in the morning. It's well worth the effort because Larsen's best accountant refers about $100,000 of LTCi premium on an annual basis.

Larsen finds most accountants who will meet with you still know nothing about the taxation of long-term care insurance. And, that's okay because it is such a small specialized area.

Once you explain how premiums can be deductible and won't count as imputed income, you'll see their face change as they recognize they know clients who should be taking advantage of this benefit.

When an accountant wants to share in commissions, discuss who is responsible for the various factors that ensure success. Explain that they should be responsible for scheduling the appointment that should be at their office. You want the accountant there during the beginning of the meeting and they should schedule at least two appointments per half day (say a 9 and 11 AM or 1 and 3 PM).

And, of course, when tax limits change you want to send the updated information.

To read the full issue featured in Long-Term Care Insurance Sales Strategies magazine, call the Association at (818) 597-3227. Request: Vol. 8 Number 2. Single issues are $20. If you join the Association over the phone, we will mail you this issue as a free bonus (while supplies last). This issue contains a free copy of the Financial Planner's Guide To Long-Term Care Insurance.