Ltc Vs Life
- Thread starter jn8691mr
- Start date
Good question, I be interested to know this as well.
Huge learning curve in understanding long term care insurance underwriting. A significant number of LTCi applicants are declined for reasons that are irrelevant for mortality underwriting.
For new agents, I think this is the greatest challenge because you want to properly frame your clents' expectations prior to going through underwriting; and you want to minimize running your clients into red lights.
Once you master the distinction between mortality and morbidity underwriting you will be fine.
It is a different mind set. Life insurance, we all know we will die and want to be sure our loved ones are taken care of when that happens. LTC planning is what happens if I don't "just" die, I need some help. What happens to my loved ones then? The hardest part is finding a client who will accept the premise they might need care at some point. Usually I find the best potential clients are those that are dealing with the care of a family member. They see the cost or the demands of providing that care themselves and they don't what that to happen to their children. As far as getting the product, the features sort of line up a little more with DI than life insurance. But there is a lot of good product training out there. Taking your LTC Partnership CE course (required in most states) is a great place to get a basic knowledge.
Embraerjetpilot
Expert
- 38
I took the course and the only thing I have access to is a ltc rider on a universal life policy. It's expensive and does not provide a lot of coverage.
Any suggestions on the best affordable choices here?
Any suggestions on the best affordable choices here?
Competitive options are Mutual of Omaha, Mass Mutual, Life Secure, Genworth, Lincoln, OneAmerica (State Life), National Guardian Life. That is it.
hancock can be competitive as long as you explain to your client to not buy any inflation projection and to reject the GPO increases every year. Transamerica can be very competitive too.
Lifesecure is ceasing sales of individual policies at the end of this month. They will still do multi-life sales, which is their bread and butter anyway.
Hancock's rates without inflation are double the base rates of MOO, MM, LS, and GNW without inflation, so not sure where JH fits in.
I agree with Tricia, many clients are in denial. They don't or more likely won't believe that they'll ever need care. When they do need it however, the underwriting can be very strict and many do not qualify for coverage.
The best time to buy LTC coverage is in your 50's when most folks are still relatively healthy. Sadly, that's when we are most in denial. lol
With that being said, a good life insurance policy with a critical/ terminal illness rider might be the best bet for many of our unqualified clients.
The best time to buy LTC coverage is in your 50's when most folks are still relatively healthy. Sadly, that's when we are most in denial. lol
With that being said, a good life insurance policy with a critical/ terminal illness rider might be the best bet for many of our unqualified clients.
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