LTC insurance questions to your agent

Submitted by Anonymous (not verified) on Mon, 03/15/2010 - 11:58

I'm 66 and thinking of getting an LTC insurance to cover my needs. I'm really wondering as to what questions I should ask before signing up.

Posted: 15 Mar 2010 04:19 Post Subject:

The first thing you need to do is educate yourself. I would highly recommend the NAIC publication called "A Shopper's Guide to Long-Term Care Insurance." PM me with your address and I would be happy to send a free copy out to you.

Long term care insurance is most suited for insurable people who have some assets to protect but who do not have enough to self-insure using annuities. I would first make sure that this is a product that is suited to you. If it is, I would then find out whether the agent has access to a product that can meet your coverage requirements. LTC products are not standardized, so the benefit amounts (per diem and lifetime) can often vary dramatically.

If there's a specific provider you have in mind for custodial care, it wouldn't hurt to call them and find out what their rates are. This will give you some idea of what to shoot for when designing your plan with your agent. For example, if the per diem rate at your facility is $250 and your agent writes you a $100 benefit, it's not going to do much for you.

Check with your agent to see if they can offer simple or compound inflation protection as well. At age 66, that might not be a bad idea to have on your policy.

Most importantly, don't be rushed into signing. Long term care policies are not one-call close applications; they need to be designed, and that takes a degree of expertise and finesse. If your agent is immediately reaching for a one-size-fits-all policy, I'd probably find another agent.

Hope this helps. Good luck.

Posted: 16 Mar 2010 08:22 Post Subject:

Please feel free to PM me and I'll be glad to send you a free e-booklet with good insurance information that may interest you. It may help you determine which way to go. If you want it, I can get it out to you.

Posted: 17 Mar 2010 02:56 Post Subject:

You go to your financial advisor and ask, "should I have long term care insurance?"

Posted: 17 Mar 2010 05:22 Post Subject:

LTC is actually a good thing for all elderly people, especially for ones who're not being able to cope with their normal daily activities due to any physical ailment or cognitive disease.

Posted: 18 Mar 2010 07:08 Post Subject:

Yes, so one important question would be - 'What's the right age to buy an LTC policy?'

It's certainly good for the elderly, but it's not just about the elderly. It could even be beneficial for someone who has LTC coverage in his 30s and gets paralyzed soon after. An LTC policy will certainly cover him for his functioning care.

Posted: 19 Mar 2010 04:18 Post Subject:

Ltc insurance is actually a necessity today! Many of us would rely on assistance from the Govt. when it comes to our health care needs e.g. nursing home care. We're often not aware of the fact that we'd be entitled to receive such benefits only when we've exhausted our assets towards such expenses.

Posted: 20 Mar 2010 07:54 Post Subject:

Money to pay for care is the necessity and not LTCi. LTCi is simply one source for this money. If one only wants nursing home care and doesn't care what ultimately happens to their assets, LTCi is not a wise purchase because Medicaid will pay. If one cares about where they receive care, then they better make sure that the assets are available either via LTCi or some other source.

Hey, Twitch, I do most of my insurance sales in one meeting. It's not about one size fits all. It's about the fact that until someone goes through underwriting, everything that we do is just a guess. If you put someone through underwriting for a $100 day policy with simple inflation, there is nothing that stops you from immediately changing it to $200/day with compound inflation. The client has plenty of time to make a decision since it will typically take a month to get it underwritten and then there will be a 30 day free look.

Anything that slows down the sales process puts your client at risk. Your client is healthy until the day that he is not.

Posted: 23 Mar 2010 06:43 Post Subject:

I do many of my insurance sales in one meeting as well; I'm not against the principle of one-call closes. I'm just a bit leery of doing transactional business with long term care. I like to get a firm grip on the long-range plans, the financials and make sure the family is on board before going forward with a recommendation. Your approach may work for you - personally, though, I just haven't had too many times when I've quoted at $100 per day simple but managed to close after jacking the rates up to $200 per day compound five. You and I understand that underwriting makes everything a crapshoot, but I find clients normally hate anything that looks like a bait and switch, even if the causes are legitimate.

Posted: 26 Mar 2010 05:28 Post Subject:

It's not done as a bait and switch. Although, I admit that it was a bad example because I've never done what I'm describing in terms of a giant difference like that. It's more common that I would quote something similar to what they might buy. My "bait and switch" is almost always in the other direction. Get a check for an amount bigger than what is expected to be sold.

Have you ever had someone who had a change in health while they were waiting to make a decision? I sure have. That's why I want to get insurance into underwriting ASAP.

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