Insurance Agent Forum

[Superchief]

I have a med supp client who is thinking of replacing their current LTC plan with a new one. She asked me for some guidance. I'm no expert but have a pretty good gist of it. Her rates went up quite a bit which is why she's interested.

She is 69 and lives in Texas and is in terrific health. Chances are, she'll qualify for a preferred rate.

My question is what would you recommend for benefits?

Daily max's / monthly benefit?

Benefit period?

Inflation protection?

Thanks!!!

[xrac]

More information is needed. What company is she with now, what is the plan, how much is she paying, what are the benefits?

[JRoot]

My question is what would you recommend for benefits?

Daily max's / monthly benefit? Find out what your area average is. Call local nursing homes...

Benefit period? Anything but lifetime. Average stay is 3 years. Just make sure the home your client picks (if benefits are triggered) has some medicare beds. Once you go on benefit, the home you're staying in cannot kick you out if they have medicare beds...even if your LTC policy benefits run out.

Inflation protection? I always suggest 3%

[Newby]

Originally Posted by JRoot

My question is what would you recommend for benefits?

Daily max's / monthly benefit? Find out what your area average is. Call local nursing homes...

Benefit period? Anything but lifetime. Average stay is 3 years. Just make sure the home your client picks (if benefits are triggered) has some medicare beds. Once you go on benefit, the home you're staying in cannot kick you out if they have medicare beds...even if your LTC policy benefits run out.

Inflation protection? I always suggest 3%

Are you meaning Medicaid beds?

[Newby]

Originally Posted by Superchief

I have a med supp client who is thinking of replacing their current LTC plan with a new one. She asked me for some guidance. I'm no expert but have a pretty good gist of it. Her rates went up quite a bit which is why she's interested.

She is 69 and lives in Texas and is in terrific health. Chances are, she'll qualify for a preferred rate.

My question is what would you recommend for benefits?

Daily max's / monthly benefit?

Benefit period?

Inflation protection?

Thanks!!!

First I would make sure you are quoting a company that has been selling LTC a long time with few or NO rate increases. If LTC insurance is done right, there really should not be a reason to raise rates.

I like MetLife and John Hancock.

Daily benefit: I would quote $200 per day if her goal is to have a policy that is intended to cover all expenses and $100 per day if she wants a policy to just suplement expenses.

Duration- Quote 3 and 5-year policies. If your state has a partnership program, make sure that is what you are quoting.

Inflation protection- 5% compounded definitely if she is 70 or under. Quote both coumpounded and simple if age 70 and above. Make sure they understand the difference. I always tell them what a quote with no inflation protection would be just so they know how much difference it makes and how important it is.

Keep the assisted living benefit at 100% but in my opinion the home health can be at 50%.

Most people go with 90-days as the deductible.

[bluemarlin08]

Why would you just quote 3 and 5 year benefits?
Why just 50% for home care?

[Newby]

Originally Posted by bluemarlin08

Why would you just quote 3 and 5 year benefits?
Why just 50% for home care?

Home health care usually costs about 50% off a nursing home stay. 100% is ideal but if the client is needing to cut corners to keep the premium a little lower, that is the area I would do.

Same with 3 & 5-year benefit. Lifetime is best of course and should be discussed but most won't take it. (My opinion of course.) The longer the better.

[GreenSky]

I would seek out a specialist in LTC and split the case.

Rick

[The New Guy]

Originally Posted by GreenSky

I would seek out a specialist in LTC and split the case.

Rick

Great advice Rick.

I would also attend the presentation with your client.

That way they feel more comfortable, and you both will get an education.

[bobson]

Originally Posted by GreenSky

I would seek out a specialist in LTC and split the case.

Rick

Am I missing something? Of all the insurance products out there, isn't LTC one of the easiest to understand? It seems silly that I have to take a specialized 8 hour CE course in order to sell LTC in my state. The partnership plans aren't rocket science either. Maybe I'm just a lot smarter than everyone else...

Car insurance is way more complicated than LTC.

[bluemarlin08]

I take a different view on home care. From personal experience I have seen that home care can exceed nursing home expenses. 80% of ltc claims are home care, I would want all the home care I can get, IMO.

[JRoot]

Originally Posted by Newby

Are you meaning Medicaid beds?

Yes. My bad...I wrote that at midnight last night, wasn't really thinking clearly.

[insuranceconceptscindy]

I take quite a different approach with men and women. Studies have shown that the average stay in a nursing home is 3 years, right? Has anyone been in one? The majority of folks that are there are WOMEN!
The reason- men don't want to be there. If they can, they will themselves to die or seek out home care. I usually sell 3 or 5 year policies to men. Women, on the otherhand, can spend many years in a facility. They are surrounded by other women that they can befriend, they don't have to worry about anything, they end up thriving as well as their health allows. There are some women that spend upwards of 10 years in facility care. I always put women in a lifetime benefit plan.
Also, look at the family's longevity. Did parents and sibling's live long lives relatively healthy? Chances are, they will too.
LTC is actually a very complicated product. There are a lot of moving parts. You want to make sure they have the right coverage, not under or over insuring. I don't want to get a phone call from a ticked off relative because the benefits ran out! Provide them what they need.

[Mr. Bill]

I think that's why Rick suggested working with a LTC specialist and splitting the case. There's just so much to do what with watching the stock market tanking, oil prices going down 33% and gasoline what 10cents? We're all just too freaking busy

PS my next door neighbor did a bit along the inventive side - they've been renting out mom's 4 br house at $10,000 /month, since they had to put mom in a facility. Not a bad way to finance the monthly fee. You can tell by the price how low the US dollar has fallen!