Long Term Care Understanding

[VolAgent]

bravo!
right on!

Yes, but did CALTCAgent research the brand of suture, the type of gauze that would be used, and whether the gloves would be sized or one size fits all? Or did he look to see if the surgery is generally effective and if there are better options before resorting to surgery to repair the tear?

That is my point. There is a difference between doing some research so you understand it on a general level and the common risks and benefits versus getting so lost in the details you can't see the forest for the trees.

 

[LGilmore]

Ed, I think your undies maybe got a bit tight for little reason sport.

Vol's Ok on the conparison because it isn't the professions it's the amount of detail requested on a subject.
We could also use auto mechanic, as how much detail do you really need before you decide and at what point does detail become counter productive?

It also is about trust. When we trust someone we tend to ask fewer questions about stuff, as we feel the person has our best interests at heart.

Surely you have clients that simply take you at your word because they trust you and you have others that want every last bit of detail, important or not.

 

[csalter]

Well, although I appreciate the analogies, I don't think they align with the longterm care concept. If a doctor tells you about a surgery and the way to rectify it, it's pretty simple you inquire and even if you don't like his solution, you may trust him but ask for a second opinion anyway. Your condition is what it is. You know what you're dealing with and the question is how to address it.

With longterm care there are so many moving parts. These parts affect the premium. No one wants to overpay, but no one can predict the future to know if they are overpaying. You don't know what your condition will be or when it will occur. You have to figure out what your income may or may not be like in 20 years after you've retired because the prices may have gone up a few times. With the unpredicatbility comes the "paralysis of analysis". That's why it's complex. Let's look at the compounding inflation. Is it better to get $12,000 at 4 years simple interest or $200 with 5% compounding interest. Where is the crossover point where it makes sense. It is not until you really do a little homework that you can even understand that that's something to consider.

I cannot tell you how reading and understanding the contract is. There are a lot of little qualifiers in the policies before you can lay a legitimate claim to reimbursement. Your own physician cannot make a care plan, but a licensed privileged care coordinator can but they must be preapproved by the insurer first. The elimination period is good for this benefit but not for that. You have to pay attention to the exclusions and other finer points in the contract or you will not be reimbursed when you think the costs are covered.

How many of you sit down and go over the contract with your clients. I have read several comments in various places about people being upset about claims not being paid because they did not meet the criteria of a specific line on the contract.

Here is the kicker, You may not be in condition to even deal with the situation. Your spouse or child who has not seen the poicy ever are the ones who are going to have to handle the situation. Do agents go over the policy with the family or just the owners.

I believe the reality to is that once you have sold the policy to your client, it is one thing off of their checklist. That policy goes into som fireproof cabinet and not seen until someting happens 20 years later or the premium goes up 30% and they begin to look to see if that can be done. I believe they are glad they have something, but are not truly sure what they have. Let me tell you, I know it's possible to be too ignorant to know what questions to ask.
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You say you understood what was told, can you be more specific as to what you were still not certain about?

I was not certain about the impact of the various variables the premium. The ratings of the company was a bit confusing because each of the companies has their own system. An A or an AA or a B++ can still mean that you can be a good company even if they are not AA+. One minute New York Life and Northwest Mutual are good companies because of their high ratings plus their premiums have not increased. However, Med America has much lower ratings but they have a monthly policy or Genworth has paid its claims and has plenty of reserves, but their ratings are dropping. It's not that I don't trust, but it's a little contradictory.

Can you be more specific as to what "full grasp" means to you?

A full grasp to me means to understand all of the moving parts involved in the premium. It means why is this specific policy best for me compared to the others other than just price. I know price plays a big part in many people's decisionmaking, but sometimes a little more can be okay in the long run. Plus the language of the policy. I don't expect you to do this, but I must say that I read an article on what to look for in a long term care policy and things like service days vs calendar days, indemnity contract vs I forget the name of the other type of contract, and daily benefit vs monthly benefit were just a few items that could make a difference. You know something funny. These are not complex concepts, but in those two or three visits, it's a lot to digest. One has to really step back a bit.

I believe you have a Partnership policy. The California Department of Health Care services has the Partnership dedicated specifically to help educate consumers.


You can ask your agent as many questions as you want. You take an application, it takes 2 to 3 months to get accepted, during that time you can research all you want. After you get the policy, you have another month "free look", even after that you can cancel at any time.

My wife and I were accepted within 4 or 5 weeks. we got preferred and Genworth called me to ask me about a mediation my wife took.

I can't see how it is "absolutely overwhelming". I think thats a bit dramatic.

I don't think it's dramatic. You look at the claims complaints and it becomes obvious that quite a few people do not realize what they bought and/or did not read the terms of their policy. Here's the big one: They did not realize that there policy would go up so much. It says in bold that your premium can go up. That is a common complaint.

Since a few analogies have been used, I'll go there.

I had shoulder surgery and the Dr. spent 15 minutes with me after MRI.

He went over MRI results. At then end, I said, "what is that jagged part"?

He said, "oh that is a tear of the labrum".

I said, "could that be where my pain is coming from"? He said, "I don't know".

So he told me my options and the procedure he could do. I did my research and decided I needed surgery.

Not sure this analogy applies, but interesting the contrast between the two decisions to me.

I guess ultimately like any purchase it is up to the customer to do his/her research on a product before he purchases, and I know many people don't do that. That is why I believe agents need to put something in place in their presentation to do what we in education call a "check for understanding". I believe if the customer understands what they are buying they will have more confidence in their purchase, believe in it and who knows? They may encourage their friends to purchase and give them your name. I realize that I got lucky on several fronts. First, I got a call about LTC. I had been considering it for a few years. Secondly, the person who sold me the policy was a parent from my job so I did trust him. Thirdly, he showed me the numbers for various policies and explained why he felt Genworth was good for me. I am lucky because it is a pretty comprehensive policy. Lastly, I was lucky because I bought my policy before all of the increases that are out there now. With our 10 pay, we aren't too far off from some people's annual premiums.

 

[supersupps]

Clinets should just buy the ltc that is like the F supp plan. You guys seem to be doing things the old way. With all my new experience, I'm told there is a new way to buy ltc.. ie the hybrid products.. am I right?? calling all mentors?

 

[Arthur Rudnick]

originally posted by supersupps

Clients should just buy the ltc that
is like the F supp plan. You guys seem to be doing things the old way. With all my new experience, I'm told there is a new way to buy ltc. ie the hybrid products.. am I right?? calling all mentors?

There is no 'F' Plan for LTCi. There are no government mandated plans like medicare supps.

Before you make an attempt of selling "the new way" with a hybrid policy, you need to go to school and learn the old way first.

If you don't understand "basic LTCi", you're far away from learning about the "new way".

 

[CALTCAgent]

Clinets should just buy the ltc that is like the F supp plan.

What clients "should" do and what they do are often 2 different things.

 

[ltcadviser]

Clinets should just buy the ltc that is like the F supp plan. You guys seem to be doing things the old way. With all my new experience, I'm told there is a new way to buy ltc.. ie the hybrid products.. am I right?? calling all mentors?

I wrote 5 hybrid policies this week. You are right that consumers like the concept. However, hybrids are not any "different" than a long term care insurance policy. Each policy requires premium funding. Each policy provides tax free benefits to pay for care. You can not write a hybrid without understanding a stand alone policy and vice versa. Product is product. There is nothing magical about hybrids or traditional LTC policies. They each provide liquidity for caregiving expenses. The rest is just marketing and fluff.

 

[TriciaS]

What I think makes this so hard is it truly is an "educated" guessing game. How old will I be if I need care? What type, for how long? Things we simply can't know unless we have a good crystal ball. I think each person needs to do some soul searching and personal review. Which a good agent would do with you. Can I pay for the first 3, 6 months of care easy, or am I "cash poor"? That's your elimination period. Whats the cost of care where I want to retire (odds are that's when you'll need the most help) and how much can I co insure of that amount without impacting my family's lifestyle? That's your benefit. How long do I think I might need care? Look at family history. That's your benefit period. Then working with an independent agent you trust, let them guide you to the carrier & product that fits your needs best. IMO, the worst mistake you can make is doing nothing.