When it comes to selling LTC, do your homework By Frank N. Darras, Nation’s Leading Disability, LTC and Life Expert Shernoff Bidart Darras

When long term care insurance (LTCI) policies were first offered 30 years ago, they were primarily policies of "last resort," typically used for elderly nursing home use and/or to kick in when Medicare ran out. Today’s LTCI policies are aimed at aging baby boomers and are feature-rich, comprehensive benefit policies complete with all the bells and whistles.

Today, policies are oversold, under-priced, poorly underwritten and the number of in-force LTCI policyholders has increased by 21 percent annually, to a total of seven million. Unfortunately, in the same period of time the number of insurance companies selling LTC has declined. For further information, see www.sbd-law.com.

Carriers who originally low-balled the market with cheap premiums to attract and gain market share have succeeded. Unfortunately, those same carriers are loosing their claim shirts, as their over-generous policy language and cheap pricing is costing them a fortune — all while their investment income is down due to low interest rates.

The carriers can’t change the economy; they can’t change interest rates; they can’t change Wall Street expectations; so they are beating down the doors of the Department of Insurance across the country for premium rate increases and turning their claim departments into "profit centers."

It is a dilemma that is about to turn into a full-blown tragedy for senior policyholders who have held up their end of the bargain — in exchange for “independent golden years” — while some of the long term care carriers are beating them into the claim mud. The worst of the worst know sick people don’t fight hard and old sick people don’t last long so they employ “a beat them up, wear them down and starve them out claim strategy,” knowing the elderly will succumb to the process.

As if the claim process was not difficult, confusing and burdensome enough, these same seniors who can’t feed, bathe or dress themselves are being hit with multiple rate increases while on fixed income. Carriers know if they keep raising premiums, sooner or later they will have extinguished the policies that are disappointing Wall Street.

Whatever you do, when you’re selling a long term care policy, research the insurance company’s commitment to long term care. How long have they been selling their policies? Is long term care their only product? How many times have they sought premium rate increases across the United States in the last 10 years?

• Know the overall financial strength and size of the company
• Check their claims payment record: Are there any market-conduct investigations or class actions making news?
• How is long term care defined?
• Can long term care be provided in the home by a family member or friend? In the home of a family member by non-licensed people who love them? In an adult day care facility? In an assisted living facility? At a hospice facility? In a nursing home?

With baby boomers and senior boomers living longer we should all be able to bank on the promises of long term care carriers and sell policies that truly give peace of mind and