Considering Adding LTC to my Portfolio of Products

[ltcadviser]

I respectfully disagree. I started writing LTC back in the late 80s. Things are much more involved now than they were... and continuing to change still. All of these in depth home health assessments -- taking up to an hour -- that was less likely back in the day. Younger and younger people now have to go through fairly hardcore underwriting like the seniors once did. I'm talking about ppl in their mid 40's even. APS's, tight Rx screening, the works.

Mutual of Omaha has really tightened the screws in the past 10 years compared to before.

Properly qualifying a prospect before an app is submitted and underwriting begins, now that is a different story. We qualify people the same way, just more thoroughly, of necessity.

Regardless, I have always been thorough. Nothing has changed in my world. You have your underwriting guides. You review your client’s health history, and you tell them if they can get approved or not. With your experience you should have a high success ratio on all of your submitted applications. I know I do.

 

[ltcadviser]

Ask Penn Treaty if they would concur with that assessment.

Never sent Penn Treaty any business. They were a poorly rated insurance company that was doomed to fail. If breathing oxygen is the only underwriting requirement to get a policy I would imagine most advisers would have known to stay away. Saying underwriting has changed because you don’t have the Penn Treaty SR400 policy to send business to says more about you, then it says about underwriting today in the LTCi arena.

 

[Jeffrey_G]

Ask Penn Treaty if they would concur with that assessment.

Or American Fidelity & Liberty. Crash and burn, both companies. Penn Treaty was once the darling of the industry-- ranked #1 in LTC by Consumer Reports magazine. Failing to adequately screen for ailments like dementia became their downfall... and lead directly to other carriers radically increasing underwriting requirements. We all know the story, and many of us lost a boatload of renewal commissions when these companies folded.

 

[Jeffrey_G]

Regardless, I have always been thorough. Nothing has changed in my world. You have your underwriting guides. You review your client’s health history, and you tell them if they can get approved or not. With your experience you should have a high success ratio on all of your submitted applications. I know I do.

Oh I do.

But again, qualifying a client and underwriting a client are totally separate animals. Because of increased underwriting standards and requirements, we are forced to much more carefully screen potential applicants than say 10-15 years ago.

 

[ltcadviser]

Oh I do.

we are forced to much more carefully screen potential applicants than say 10-15 years ago.

not a bad thing, your time is valuable, as is your client’s time, as is your underwriter’s time.

 

[kpbdy99]

Selling LTCi is a lot different than selling Medicare. First, the Medicare market is older now than most people who are buying LTCi. And, Medicare is, frankly, an easy sale. They're going to buy it somewhere, you just need to be there and be competent. With LTC insurance, most of them don't want it, and it costs two-to-three times what the best med supp plan G is going to cost them. So, it's a much smaller target market. I'm not saying you won't be successful at it, but you have to be realistic. Your best approach would be to find a good mentor, an LTC agent with some real experience, to help you get started.

 

[ltcadviser]

Selling LTCi is a lot different than selling Medicare. First, the Medicare market is older now than most people who are buying LTCi. And, Medicare is, frankly, an easy sale. They're going to buy it somewhere, you just need to be there and be competent. With LTC insurance, most of them don't want it, and it costs two-to-three times what the best med supp plan G is going to cost them. So, it's a much smaller target market. I'm not saying you won't be successful at it, but you have to be realistic. Your best approach would be to find a good mentor, an LTC agent with some real experience, to help you get started.

LTCi is just as easy. They are also going to buy LTCi somewhere and you also just have to be competent.

 

[insurgal81]

Hi, I'm a Med Supp agent also considering adding it to my portfolio. I sold it years back but then just stopped as I got busier with Med Supps. Who do you suggest for an FMO or do you suggest going direct? I have a strong understanding of traditional LTC but not a lot with the hybrid policies.

 

[ltcadviser]

Hi, I'm a Med Supp agent also considering adding it to my portfolio. I sold it years back but then just stopped as I got busier with Med Supps. Who do you suggest for an FMO or do you suggest going direct? I have a strong understanding of traditional LTC but not a lot with the hybrid policies.

There is no such thing as “going direct.” In the brokerage arena you will have an upline.

 

[rousemark]

Ask Penn Treaty if they would concur with that assessment.

The last LTC plan I wrote was with Penn Treaty.