Despite considerable uncertainty, economists expect 2012 will be better than 2011. However, don’t bang the drums just yet – growth will be slow and no one is predicting the recovery most people nearing retirement are hoping for.

Like many Americans, I’m experiencing the same economic challenges in trying to save for a secure retirement. In fact, one of the broader impacts of this recession is how it has significantly altered the traditional definition of retirement for most Americans. The struggling economy, combined with its effects on 401k savings and the decline of traditional pensions, among other factors, have all contributed to a growing pessimistic outlook for those nearing retirement (ages 46-65). Fewer people see retirement as a time of leisure and more are expecting to have to struggle to make ends meet or not be able to retire at all, according to a recent study by the AARP.

However, this tough economic environment surprisingly presents immense new opportunities for selling long-term care insurance, if you take a fresh approach with your clients.

Let’s start by reviewing how people now think about retirement.

Overall, an increasing number of people nearing the age of retirement feel their retirement outlook has diminished in the last five years. More people are also:

• Less confident in their ability to prepare for the future.
• Unsatisfied with what they’re putting away for retirement.
• Anticipating having to scale back their lifestyle during retirement.
• Expecting to work part-time in order to supplement their income.

When you add it all up, it reveals an overwhelming anxiety and uncertainty about the future. For many, a natural step to quell this worry is to seek advice from a financial expert on how to strengthen their portfolio and get their retirement plan back on track. That’s where agents can help. The challenge is to show how LTCI gives people a reason to feel secure about the future. Start by analyzing how you typically build the value of long-term care insurance. With so much cause for concern and many question marks surrounding their retirement years, consider focusing on the answer to the question, “How does LTCI secure the retirement I want?”

An easy answer has always been eliminating financial risks, which still holds value in today’s uncertain market. But if you expand the vision and look at it through the lens of living well, you can position LTCI as a form of lifestyle protection. Whether they end up needing care or not, LTCI empowers them to live well and enjoy their retirement.

As I noted earlier, more people are growing concerned with having to scale back their lifestyles to make ends meet during retirement. What they’re looking for is the confidence that their retirement income will be there to support them and their family when they need it. LTCI supports and extends retirement savings so that it can provide for daily living expenses. LTCI also provides the added confidence that the cost of unforeseen care needs will be met. It can also help preserve the relationships of children and immediate family members, as they won’t be burdened with additional financial or caregiving demands if care is needed.

For others, optimism about the future comes from the opportunity to live healthier lifestyles and maintain a good quality of life. For example, increasingly LTCI products are providing policyholders with more immediate benefits – such as wellness evaluations and planning, caregiver support, educational tools and other support services – which encourage healthier and happier living now and as they age. Benefits such as these can help younger demographics and those nearing retirement see an immediate value in LTCI.

According to the American Association for Long-Term Care Insurance, the average age of LTCI policy purchasers is 57, and more than three-fourths of purchases are made between the ages of 45 and 64. Finding the right approach that works for you and your clients will help you create more opportunities in this target market, specifically among younger workers who are planning for their future.

Of course, different clients will find value in different aspects of coverage. And as LTCI products continue to evolve, so will the perception of value among consumers. In addition to staying current on industry trends and making sure you offer the most innovative and up-to-date products, agents must also strive to better understand the emotional needs and priorities of their clients. This will allow you to make a personal connection and improve your chances of showing your client how LTCI really does help them live well and why it is a must-have component of retirement planning.

Related posts:

• Long Term Care Insurance and Medicaid: Why 9 out of 10 Clients Make the Wrong Choice
• Mastering Long-Term Care Insurance Sales
• What’s Your Plan: Raising the Issue of Long-Term Care
• Long Term Care Benefits: How to Advise Your Clients
• New Report Examines what Consumers Really Pay for Long-Term Care Insurance