Long Term Care Underwriting & Marketing (LTC) – Video Talk Show – Segment One
Hosted by Steve Savant, national insurance columnist and financial color commentator.
Special Guest: Susan Carlson, Head of Brokers Alliance LTC Division and nationally recognized LTC expert, educator and workshop trainer.
LTC is morbidity underwriting, not mortality underwriting. Many LTC carriers view specific impairments more favorably than the rest of their peers. John Hancock and Prudential are considerations with diabetes. For depression, Genworth may be more favorable. Morbidity underwriting views progressive health like increasing weight, which for LTC is the new “smoking” gun. Obesity can lead to diabetes, which can effect mobility and sometimes lead to strokes and Alzheimer’s. So BMI is a big deal. Transamerica is favorable to BMI.
Pre-packaging the case for carrier bidding is important as is preparing a client for the telephone interview and the collection of APSs. Generally, there’s no request for blood and urine. LTC is generally an “accept or reject proposition”, not table rated product like life insurance. LTC is the most highly regulated senior product on the market.
Demographics and target markets of LTC: The advisor needs to own what he/she sells, so carrying a policy is step one in closing the client. Advisors may receive an agent discount as well their traditional compensation. The average age of LTC policy is 57. Younger business owners with parents should consider purchasing LTC to avoid future costs and guarantee assisted care. The AARP Nation starts at age 50, senior discounts start at age 55…both great demographics for LTC.
Many carrier proposals illustrate the cost of waiting to purchase LTC. Some policies make sense to purchase a limited pay like ten pay for younger clients. Proposals should show ten pay and continual pay. LTC is omitted in retirement and estate planning, exposing the advisor to an E&O claim.