Who can Sell Long-Term Care Insurance?
Financial Advisor/Planner
Financial advisors and planners provide several services, such as investment management, retirement planning, and estate planning. Along with these services, they may sell other products, one of those being Long-Term Care Insurance to protect your assets from future costs of long-term health care such as in-home aid or nursing home costs.
Local Insurance Agent
Your local insurance agent can sell many different types of insurance, Long-Term Care Insurance being one of them. Typically, local insurance agents will represent just one company for an umbrella of products.
Independent Insurance Agency
These insurance agencies often offer many different insurance products. Some will also offer Long-Term Care Insurance.
An independent insurance agency that has a specialty in Long-Term Care Insurance acts as a neutral resource in working with all major insurance companies. Agencies have an increased array of knowledge and experience in long-term care planning and the underwriting process of insurance policies.
Long-Term Care Specialist
A Long-Term Care Specialist is an insurance agent who has substantial experience in Long-Term Care Insurance, underwriting, policy design, and claims experience. The specialist may work as a captive agent for just one insurance company, or on their own, representing multiple insurance companies. Some specialists work with an agency and some agencies specialize in Long-Term Care Insurance.
Most specialists represent all or most of the leading insurance companies that offer Long-Term Care Insurance. They typically have five or more years of experience in the field, although some have as many as 20 or more years of experience.
Since there are a limited number of true Long-Term Care Insurance specialists in the country, many help consumers in multiple states.
Which One Should You Use for Long-Term Care Planning?
Many clients will turn to their financial advisor about long-term care planning so they can protect their assets from the high costs of care they might need later in life. Often, advisors give out incorrect information. This can drastically affect the cost and/or usefulness of the insurance policy when the time comes to use the benefits.
The same can be said of general insurance agents and local agencies.
Financial advisors and general insurance agents and agencies often have minimal experience with long-term care planning, lack a full understanding of the partnership program available in 45 states, and have never processed a claim.
Generally, a financial advisor or general insurance agent or agency is not your best option when it comes to planning for the financial costs and burdens of aging.
It’s good practice to leverage a team of specialists to plan for your future (or current) retirement. A financial advisor can help you grow assets, and a Long-Term Care specialist can safeguard those assets from the impact of longevity.
Separating this advice helps you plan for a successful retirement. Long-Term Care Insurance is very complicated for agents and advisors because each insurer has its unique underwriting standards, featured benefits, and price points.
Additionally, many consumers should be taking advantage of the federal/state partnership program to obtain additional dollar-for-dollar asset protection that many states offer for qualified long-term care policyholders. This program requires certification to sell such policies. The fact is financial advisors, and general insurance agents are not well prepared in this area.
At McCann Insurance Services, Inc., we have over 20 years of experience in helping people all over the country plan for the financial costs and burdens of aging. Matt McCann, a nationally known expert in long-term care, is one of a few specialists, nationwide, endorsed by the American Association for Long-Term Care Insurance (AALTCI). AALTCI is a national consumer advocacy and trade organization.