At what age should someone consider
- Thirty-seven percent of people
who would immediately benefit
from LTCI today, because of
their long term care needs, are
under the age of 64. A catastrophic
disability can occur at any age.
For instance: Michael J. Fox (Parkinson’s)
Christopher Reeves (horseback riding
accident) are two examples. The younger one is, the
less expensive long-term care insurance is.
LTCI premiums escalate exponentially the older one
What is required to qualify for long
term care insurance?
- Money, health and age are three
considerations when looking into
LTCI. In order to qualify
for LTCI, one needs to be able to:
afford the premium, pass medical underwriting and be
under the cutoff age for the
insurance company. Most companies do
not issue LTCI insurance past age 85.
The younger one is, the more likely the
long term care insurance requirements can be met.
What is the cost for long term services
in my area?
- The 2008 nursing facility costs
range from $123/day in Baton Rouge,
LA to $506/day in Alaska. Assisted
living and home health care costs
are generally lower. Thus stresses
the importance of purchasing
LTCI. while young.
Click Here for cost of long term care by
At what ages do people typically buy
long term care insurance?
- The average LTCI. purchase age is rapidly
declining. In the year 2000 the
average LTCI purchase age was 69. In 2008, the
average LTCI purchase age was 57.
With the explosion of employer sponsored
LTCI, plans the average
will be in the low to mid 40’s in the next
three to five years.
What services are covered by long term
- Services provided have changed
over the years. At one time only
nursing home care was paid for.
Today LTCI provides a myriad of
services that people want and need later
in life, including: nursing facility care,
assisted living care, adult day
care, home health care, cash
payments to family and friends
providing care, group home care. In
short, an long term care insurance
policy can be flexible enough to provide
not only the services people need but also
the services for care in the setting
they want. Costs that would normally be
covered by LTCI are no longer covered
by Social Security or Medicare.
Why should I bring up the topic of long
term care with every one of my clients?
- With the passage of the Deficit
Reduction Act of 2005 (DRA-2005)
it’s imperative that the agent bring
up the topic of long term care. Most
people are not aware of this new
federal law that puts the enjoyment
of their retirement at risk, because many
of the costs of long term care would come
out of pocket, instead of paid out through
an long term care insurance plan.
Since DRA-2005 was passed, it is almost
impossible to pass along the cost of
long term care to the government.
Thus impacts the importance of LTCI.
Does an agent have a potential liability
for not discussing LTCI with a client?
- If the insurance broker
does not bring up the subject and
have a meaningful discussion of LTCI
with the client, the agent is creating
an E & O exposure. For example,
an agent in New Jersey did talk
to his client about LTCI. However,
he did not have the discussion
documented. Result: he had to
pay out $747,000 because
the children of the client sued
claiming that their inheritance
would not have been reduced had he
done his job & discussed the importance
Isn’t long term care insurance expensive
and hard to sell?
- If an agent tries to sell LTCI
the “old fashion way” the answer is
yes. However, agents working with
Insurance Advisors have learned to
sell LTCI the “new way”
and are not finding it
expensive or hard to sell.
How are “partnership plans” affecting
the sale of long term care insurance?
- They are having a very positive
effect on the sale of LTCI because
partnership plans have created a
situation where virtually anyone can
afford to buy LTCI.
What if a client wants to “self insure”
for long term care?
- The majority of the time when a
client says they want to self
insure, what they’re really saying
is, “I’m so invincible I’ll never
need long term care or LTCI.” From a purely
logical stand point: your client owns fire
insurance on their home and they
carry collision insurance on their
car. Why don’t they self insure these
exposures? Because the risk is too high,
and the costs associated with self-insurance
would break them. The same rings true
when talking about LTCI.
For those clients who truly want to
self insure because they don’t understand
the value of long term care insurance,
there are ways to show them how to transfer
the risk to the insurance company through
LTCI for less than 1 cent on the dollar
Insurance Advisors, Inc.
Long Term Care Insurance
- Co-Founders of America's Long Term Care Insurance Experts
- IA Sits on the American Society of Actuaries LTC Think Tank
- Developed methods, systems, and sales tools to aid in your success
- New & Veteran agents find success working with us Click to learn more
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Employer Sponsored LTCI (Multi-life)
Long Term Care Insurance