LTCi Information, Please!

[Finale]

I've been reading and learning a great deal of extremely valuable information on this forum in the past few months. As a new agent, I respect those veterans who have responded. This venue is an invaluable tool to those of us learning and experiencing this exciting business of insurance.

So once again, I come to you for advice. I have positioned myself in the advanced planning arena of Final Expense. I'm thinking of adding LTC to my portfolio as an option to those clients not sold on FE.

Can anyone give me some direction as to an LTC company to become contracted with that provides a decent coverage at a reasonable premium for the clients I deal with. One company I am considering is Allianz LTC.

Again, thank you in advance for your response.

 

[Todd King]

There are a few good companies out there. John Hancock is one. I also like Life Secure, which is actually a BCBS product. You also need to find out if your state offers a "Partnership Program".

 

[Finale]

Hey Todd, can you enlighten me on "partnership program" what's that? And do you know anything about Allianz?

 

[xrac]

Hey Todd, can you enlighten me on "partnership program" what's that? And do you know anything about Allianz?

It would help to know what state you are in. Here is a run down on Indiana's program. You probably need to take a CE course on LTCI.

Indiana Long Term Care Insurance Program

 

[Finale]

Btw, I'm in Wisconsin and hold a Life, Accident & Health License

 

[xrac]

Btw, I'm in Wisconsin and hold a Life, Accident & Health License

Here you go then:

Wisconsin Commissioner of Insurance Long-Term Care Insurance Frequently Asked Questions

 

[Finale]

thanks x, appreciate the insight.

 

[insuranceexec]

The problem with Allianz is that if your client has a cold they will not be approved. I know I am little over zealous stating that; but they are extremely tough to get through underwriting. In 2007 I submitted 68 total cases through Allianz and I only had 12 issued both as applied for. I had another 25 that were rated sub-standard; that I could not place with them. That leaves the remainder 31 who did not get an offer.

I left the original 12 with Allianz, and the other 56 I shopped and found homes for 48 of those polices all issued standard or better with other carriers. I say this so you will not take all the time it took me to realize that Allianz is not the best. Do your job and correctly field underwrite these polices to find the right fit. Yes they have the best rates and you get an additional 5% off if they have an annuity with Allianz, but if all your time is spent shopping other places, then you have wasted your time. Hancock, Met, and Mutual are other good options in the LTC market. I hope this helps.

 

[Charpress]

The problem with Allianz is that if your client has a cold they will not be approved.

Basically my same experience. My first few went through with no problem. I got calls from Allianz congratulating me and asking for future business. The next 4 in a row were turned down. Usually it was one spouse or the other which left the remaining spouse without the 30% spousal discount, which killed the sale.

The big advantage to the Allianz product is being able to "upgrade" every 5 years without any underwriting. That is a good selling point. However, LTC apps are a HUGE pain and very time-consuming. PLUS, people tend to get pissed on these when turned down so you also may lose a chance at cross-selling. Most of my long term care efforts are geared towards having a happy insurance consumer who may be interested in other opportunities.

So, which are the companies that you have found to have better underwriting?

 

[insuranceexec]

Met: if you have a super healthy spouse and one that is lacking. In speaking with their UW they told me that this weighs heavily as the healthy spouse often will help facilitate care for the not so healthy. State life is another good LTC provider. Their UW is liberal, and you can get an insulin dependant diabetic a standard rating. Lastly Hancock is good as well for getting somebody approved with some heart conditions. LTC is not my primary market, but I do write it when I get the chance. Last I heard Hancock was working on a 1st to die policy that you could add the life care rider too to give both spouses access to the LTC bucket. When the one spouse dies the other gets the DB. You could further that by dumping in Cash value (VIA 1035) from existing polices the client may have and offset the inital cost. very interesting concept.