LONG-TERM CARE INSURANCE
Long-Term Care Insurance Brokers
With each passing day, more and more Americans are entering the senior citizen stage. As this demographic rises, so do their long-term care (LTC) insurance needs. This means you need to work with the right long-term care insurance broker who can provide the most suitable plans for your clients. At EMG Insurance Brokerage, we specialize in helping insurance agents and agencies find the best long-term care benefits for clients. Read on to learn more about how we can help you ensure the best care planning for your elderly clients.
Find the Best Long-Term Care Insurance Company for Your Clients
An estimated 10,000 Americans turn 65 every day, according to AARP. Many are concerned with planning for both retirement and future medical needs. Long-term care insurance can be a great way to help current and potential clients mitigate the risk of chronic illnesses that are common in old age. These conditions are not covered by Medicare or standard health insurance policies, meaning your clients could be facing significant out-of-pocket costs if they are not prepared.
Many people nearing retirement age will consider Medicare, annuities, and life insurance, but fewer know about long-term care insurance. This type of insurance coverage, traditionally speaking, has not quite had the emphasis and exposure that it certainly needs and requires. Because of its complexity, many professionals find long-term-care insurance challenging to explain to clients. .
It is important to work with an established brokerage firm that employs knowledgeable professionals. A brokerage agency understands the importance of long-term care insurance planning. Understanding how to find the right long-term care policy can help you retain current clients and attract new ones.
What Is Long Term Care Insurance?
It is a policy that provides coverage for individuals suffering from long-term or chronic debilitating illnesses. A long-term care coverage fund covers expenses that Medicare and standard insurance policies do not cover. It offers long-term care insurance benefits for nursing home care, home health care, and other senior care retirement needs.
It is particularly helpful for private long-term care, which is more flexible and has better options than public assistance programs. Long-term care insurance can be expensive, and most policies typically have a 90-day waiting period. Working with a knowledgeable insurance brokerage is often crucial to finding a policy that will cover long-term care for a client.
To be eligible to begin receiving LTC benefits, an individual must be certified by a physician. There are several qualifying factors that make an individual eligible for long-term care. These include:
- Those who have a severe cognitive impairment, such as dementia or Alzheimer’s disease.
- Those who are unable to perform at least two activities of daily living (ADLs).
What Are the 6 ADLs for Long-Term Care Insurance?
The activities of daily living (ADLs) are the ones considered essential, which most individuals can do without assistance. The six activities of daily living are:
- Bathing: The individual can clean and groom themselves.
- Dressing: The individual can dress/undress without assistance.
- Eating: The individual can feed themselves.
- Transferring/Mobility: The individual can sit, stand, walk, or move from a bed to a wheelchair and back again without assistance.
- Toileting: The individual can get on/off the toilet and clean themselves.
- Continence: The individual can control bladder and bowel functions.
What Does Long-Term Care Cover?
It covers the necessary expenses needed for extended care. For example, LTC insurance providers cover care provided by a certified nurse who offers in-home care for an individual suffering from dementia. However, a neighbor’s child taking out the trash for you would not be covered. The policies also cover a wide range of care types, including:
Nursing Homes
Nursing homes are also known as skilled nursing facilities. These facilities are for those who require more focus on medical care in a hospital-like environment, versus in-home care. Nurses monitor residents around the clock and are always available to provide care on a 24/7 basis.
Assisted-Living Facilities
These are available for individuals who need assistance with ADLs and some medical oversight but do not need the extensive medical help that would require them to be in a nursing home. In assisted-living facilities, individuals often live on their own in apartment-style housing. Nurses are always available for on-site care needs. In addition, assisted-living facilities provide more community-based services such as organized activities and transportation to grocery stores and doctors’ appointments.
Home Health Care
This includes in-home care services for those who have chronic illnesses. Certified home health care providers come to you to assist with medical care, ADLs, and everyday home assistance. Essentially, they help with activities that individuals are no longer able to do themselves. Home health care includes full-time live-in assistance or limited daily care.
Adult Daycare
Adult daycare is designed for seniors with cognitive impairments. Think of adult daycare as similar to daycare provided for children. These centers are run by certified individuals who understand the impairments they are working with and have medical training. They provide lunches and have activities planned to allow seniors to socialize and engage with their surroundings.
The Need for the Best Long-Term Care Insurance Broker for Your Client
According to the American Association for Long-Term Care Insurance, almost 80% of people who buy LTC insurance policies are aged between 50 and 69 years. Many of them are concerned with planning for both retirement and future medical needs. Long-term care insurance brokers can bring strategic care solutions for current and potential clients.
The right insurance plan can help mitigate the risk of chronic illnesses that are common in old age. It can also protect them against the rising costs of long-term care services like in-home care, memory care, and assisted living. These conditions are not covered by Medicare or standard health insurance policies, meaning your clients could be facing significant out-of-pocket costs if they are not prepared.
Why Work with Long Term Care Insurance Brokers?
Many professionals find long-term care insurance difficult. This makes working with experienced long-term care insurance brokers essential. They are insurance specialists who help clients compare policies from top long-term care insurance companies like Mutual of Omaha, National Guardian Life Insurance, and New York Life Insurance.
A broker can assist in navigating insurance coverage details. They understand the importance of long-term care insurance planning. As such, an experienced broker can explain care benefit options and structure a policy that includes inflation protection, a suitable benefit period, and the right daily or monthly benefit amount. With long-term care costs rising, it’s more important than ever to explore traditional LTC insurance, hybrid long-term care insurance, or asset-based policies.
Understanding how to find the right long-term care policy can help you retain current clients and attract new ones.
How Do I Select the Best Long-Term Care Insurance Company for My Client?
When reaching out to your clients about long-term care insurance, carefully consider your clients’ needs. Those approaching retirement age or those worried about the risk of chronic or critical illnesses should purchase long-term care insurance products. It is vital to look at basic options for your client. Work with a broker to explore the policies in detail.
There are four options for getting a long-term care insurance solution:
Traditional Long-Term Care
A traditional long-term care policy functions like a homeowner’s policy. You pay premiums annually; if you have a covered claim, you file. However, if you never file a claim, you won’t collect any benefits from the policy. In industry jargon, it is referred to as a use it or lose it policy.
Asset-Based Long-Term Care
An asset-based long-term care insurance program is also sometimes referred to as a linked benefit policy. This type of policy offers tax-free long-term care (living) benefits in addition to or in place of a death benefit.
Life Insurance with a Long-Term Care Rider
Life insurance with a Long-Term Care (LTC) rider is a basic life insurance or annuity policy with a specific rider added at the time of application. The rider allows for a certain percentage of the death benefit to be used to pay for long-term care costs. The rider is usually available at an additional cost to the base policy.
Medicaid
Medicaid should be a last resort for LTC. It requires little to no income before individuals can receive assistance. Medicaid is a state and federal cooperative program authorized under Title XIV of the Social Security Act. The program pays for certain medical and health costs as defined in the medical assistance program.
An LTCI broker can walk you through these products and services and find the best fit for your clients and their needs for long-term care.
EMG Can Help!
As a brokerage general agency, EMG handles everything from submission to commission. Our team of long-term care experts is devoted to providing consistent support for you. With a dedicated department to assist our long-term care clients, we can provide reliable front-end and back-office support.
Our goal is to act as a one-stop shop for anything from enrollment to account maintenance and make sure the process is done efficiently to save you time. Our highly personalized approach gives us the ability to tailor solutions to each client.
Connect with us by phone, online, or in person, or schedule a consultation with your sales director on how to grow your business today.
Frequently Asked Questions About Long-Term Care
How Are Long-Term Care Policies Structured?
Benefit periods can range from one to seven years. Lifetime benefits are also available under certain policies. Benefit amounts are specified in either daily or monthly benefits. Premiums between these benefits do not vary much, but it is essential to keep in mind how much you plan to use your benefits.
For example, if you have a reimbursement style policy with a $150 daily benefit and your care for the day costs $250, you are reimbursed (with a receipt or bill) for the $150 daily benefit. The daily/monthly benefit amount is elected at the time of policy application or issue. That amount will be the maximum benefit allowed for reimbursement each day or each month. Any extra expense above the stated amount would be out of pocket for the policyholder or insured person.
What is the Difference Between Indemnity-Style Benefits and Reimbursement-Style Benefits?
Reimbursement-style benefits only reimburse qualified long-term care expenses. For example, home health care provided to the insured by a certified home care nurse is eligible for reimbursement. However, a family member who is not certified to provide care would not be reimbursed.
Indemnity-style benefits are much different. Once you meet all of the qualifications to receive the benefits, the carrier will deposit the full benefit amount into your bank account, and you can spend it as needed. These benefits are more common with informal caregiving, such as compensating a family member who is taking care of you or even a neighbor helping you around the house.
Should I Sell a Long-Term Care Policy Through a Brokerage General Agency?
Working with a long-term care insurance brokerage general agency (BGA) is the best way to save time and find the best long-term care policy options. A BGA will do the shopping for you and help you find the best long-term care products based on your client’s needs. In addition, BGAs have access to multiple carriers and are compensated by the carriers. Because of this, there is no cost to an agent when working with a BGA.
How Do I Find the Best Brokerage General Agency?
There are several approaches to finding a quality BGA. The best place to start is often asking your network for referrals. You can also connect with NAILBA, a leading insurance industry organization promoting consumer choice.
You can also do your research by prospecting several brokerage general agencies in your area. We recommend looking for these qualities in a BGA:
- Responsiveness and attentiveness. Are they knowledgeable of the policies that best serve you and your clients’ needs?
- Back-office support. What happens after an application is submitted?
- A good team, instead of just a good salesperson. Make sure that the service is as good as the pitch.
You can also learn a lot about the brokerage by calling them directly and asking pertinent questions, such as:
- How long have you been selling long-term care insurance?
- Have you had any issues with the state?
- Who are your primary carriers?
- What are their ratings?
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