Monday, August 20, 2012

LTCi SALES Underwriting and Processing



Money Just Pays for LTCi Health Buys It

It is extremely important that the Agent check with the company underwriting published guidelines or call the carriers underwriting department if there are questions.  All Carriers have different underwriting requirements.

The underwriting process for LTCi may include a telephone interview, face-to-face interview, Attending Physicians Statement (APS).  If the client has not seen a Physician in the last 18 months a physical may be requested.


HEALTH RATINGS: Substandard ratings are limited, with many carriers only issuing policies without any additional ratings. These carriers will not consider flat extras or table ratings to approve an applicant they feel is likely to submit an immediate claim against the company, nor do carriers make table-rated offerings.

INFORMATION TRANSFER: LTC insurance carriers will not transfer information to other carriers upon request.  Some carriers may notify the Medical Information Bureau of any declines

TRAINING, TAX ADVANTAGES, AND LIABILITY:
 The majority of states now require LTCi-specific Continuing Education credit or Long Term Care Partnership Training.
                   
 LTCi offers potential tax advantages to the business market and individuals. 
 A potential liability may exist if an agent fails to offer Long Term Care insurance for protection of a clients assets and financial plan.

UNDERWRITING TIME: Underwriting LTCi may take longer than Life insurance because the carrier is evaluating morbidity and/or mortality issues. Expect underwriting to take 6 to 8 weeks.

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