Open the Door to Small Business Sales

When it comes to selling Long-Term Care Insurance to small business owners, the process is significantly different than selling to individuals. While individuals may be motivated by their personal needs and emotions, business owners approach this as a more logical discussion about how the insurance can assist with their business finances.

One key aspect that captures the attention of small business owners is the potential to save on taxes. By highlighting the tax benefits, you can open the door to an LTC sale. A great opening line could be, "If I could show you a way to reduce your business's tax burden, would you be interested?"

The good news is that all types of businesses can deduct LTC Insurance premiums paid using business funds. However, the specific deduction depends on the tax structure of the business. For owners of C corporations, they have the advantage of deducting the actual premium paid on an LTC Insurance policy for themselves, their employees, spouse, dependents, and a designated class of employees.

On the other hand, self-employed business owners, such as sole proprietors, partnerships, or LLCs, also have the opportunity to deduct the eligible premium paid for themselves, their spouse, and dependents. The eligible premium is determined annually based on the medical care components of the Consumer Price Index.

This opportunity allows you, as an insurance professional, to approach any small business with a money-saving solution. It's crucial to present them with a comprehensive plan that not only offers essential LTC coverage but also enables them to take advantage of federal tax incentives. By emphasizing the potential tax savings, you can capture their attention and demonstrate the value of Long-Term Care Insurance for their business.