DOL & Long Term Care Planning

Given the cost of LTCI and the shrinking pool of carriers, I would think doing a comparison of the pros and cons of both would cover any producer.

By that, I mean show the client the big, BIG, drawback of LTCI: it is about the only insurance product that can raise rates almost at will (as long as a whole class is raised). I had one client who turned 82 get an enormous rate increase.

There is a horrendous statistic out there showing that about one-third of LTC policies are dropped before they are ever used. There are two major reasons for this: one is that it can become un-affordable at some point. The other is that dementia and other cognitive impairments leads to a lapse for failure to pay premiums. That is why it is so important to specify a back-up person to get any cancellation notices. I have a feeling that carriers are not that unhappy that someone who paid premiums for 20 years is going to drop the policy now that they are 82.

Anyway... doing a comparison and putting it in writing, together with a jointly arrived at strategy that the client signs off on, would go a long way in satisfying any "best interests of the client" concerns.
 
Not talking about LTC can be interpreted as breach of fiduciary duty too so the best is to talk about LTC, document it, and present solutions to the client.
 
Not talking about LTC can be interpreted as breach of fiduciary duty too so the best is to talk about LTC, document it, and present solutions to the client.

Which brings up something that I was going to start a new thread about.

Would it not be wise to be contracted with a few LTC carriers so you could actually, and in good faith, offer alternatives- real quotes? I guess the answer to that is obvious.

The FMOs that I'm contracted with will not touch LTC. I guess the reason is obvious: it ain't where the money is.

I've looked at a couple of FMOs that Google up as handling LTCI. Not impressed.

One has LTCI way down the list and, surprise, annuity products at the top.

Another does "only" LTCI but when you drill down it seems they actually want the business for themselves as a "service" -not an FMO after all.

Any suggestions here for a good LTCI source? FMO? Direct contract?
 
Which brings up something that I was going to start a new thread about.

Would it not be wise to be contracted with a few LTC carriers so you could actually, and in good faith, offer alternatives- real quotes? I guess the answer to that is obvious.

The FMOs that I'm contracted with will not touch LTC. I guess the reason is obvious: it ain't where the money is.

I've looked at a couple of FMOs that Google up as handling LTCI. Not impressed.

One has LTCI way down the list and, surprise, annuity products at the top.

Another does "only" LTCI but when you drill down it seems they actually want the business for themselves as a "service" -not an FMO after all.

Any suggestions here for a good LTCI source? FMO? Direct contract?

Call LTCI Partners (800) 245-8108 if you want an FMO for LTC.
 
Call LTCI Partners (800) 245-8108 if you want an FMO for LTC.

Thanks for the tip.

They seem to be oriented more towards B2B, as in providing or consulting on LTCI as an employee benefit package.

Do you feel they would work well with an individual producer who, frankly, would not be going 100% after LTC sales.
 
LTCI: it is about the only insurance product that can raise rates almost at will (as long as a whole class is raised).

really?
you mean there are no regulations about LTCi rate increases?

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Thanks for the tip.

Do you feel they would work well with an individual producer who, frankly, would not be going 100% after LTC sales.

they are set up for someone just like you.
they'll even complete the application with your client right over the phone, so you don't have to.
 
really?
you mean there are no regulations about LTCi rate increases?

Well, that's true enough -increases are regulated and not automatic -although sometimes it looks close to automatic, at least in my state.

I was more referring to the contractual right in LTC paper that gives the carrier the means to raise rates. Given the cost of health care, they were wise to leave a way to mitigate losses, much like P&C carriers.
 
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