Securing long-term care insurance (LTCI) can be a complex process, and underwriting guidelines continue to evolve. As an agent, your role is crucial in guiding clients through the application process, improving their chances of approval, and ensuring they obtain the coverage they need. By educating clients, pre-screening health risks, and exploring alternative solutions, you can help them navigate this process with confidence.
Read More: Planning for Long-Term Care at Different Life Stages
1. Emphasize the importance of applying early.
Encouraging clients to apply sooner rather than later can significantly impact their eligibility and premium rates.
- The ideal age range for applying is between 50 and 60. This is when clients are more likely to be in good health and qualify for better rates. If they are younger, premiums tend to be even more affordable.
- Delaying can lead to higher premiums, limited coverage, or even denials. Many applicants wait until they notice health concerns, but by then, qualifying may be difficult or impossible.
- Use real-life case studies. Show clients examples of individuals who successfully secured coverage by applying early versus those who were declined due to waiting too long.
2. Conduct a thorough pre-screening.
Identifying potential underwriting risks before submitting an application can help avoid unnecessary denials.
- Ask about key health factors upfront. Gather details on medical history, prescriptions, BMI, and chronic conditions.
- Match clients with the right insurer. Underwriting criteria vary by carrier. One company may approve a client that another would decline. Research options to find the best fit for each client.
- Watch for red flags. Conditions like Alzheimer’s, Parkinson’s, history of strokes, or significant mobility issues often result in automatic declines.
3. Help clients improve their health profile.
While some health factors are beyond control, others can be managed or improved to enhance insurability.
- Encourage a healthy lifestyle. Maintaining a healthy weight, staying active, and quitting smoking can help clients qualify for better rates.
- Manage chronic conditions proactively. Controlled blood pressure, cholesterol, or diabetes with documented medical history can improve underwriting outcomes.
- Advise on medication management. Inconsistent prescription use or unnecessary medications may raise concerns with underwriters.
4. Be ready to turn to alternative LTC solutions.
If a client does not qualify for traditional LTCI, explore other options that provide protection.
- Hybrid policies: Life insurance with an LTC rider or annuity-based LTC plans may have more flexible underwriting requirements.
- Group or employer-sponsored plans: Some clients may qualify for simplified underwriting through association or workplace coverage.
- Short-term care insurance: This can be a valuable alternative for those who do not meet LTCI underwriting standards but still want some level of protection.
5. Prepare clients for the underwriting process.
Setting the right expectations can help clients avoid surprises and improve their chances of approval.
- Explain the steps involved. Underwriting may include medical record reviews, phone interviews, and cognitive assessments.
- Ensure accurate medical records. Discrepancies in health history can lead to delays or denials. Clients should review their records for accuracy.
- Coach clients for cognitive screening. Encourage adequate rest, minimizing distractions, and taking the assessment at an optimal time of day to improve performance.
Read More: 10 Common LTCI Questions and Answers
As an agent, you play a key role in setting clients up for success in the LTCI underwriting process. By educating them on early planning, pre-screening health risks, offering lifestyle improvement tips, and positioning alternative solutions when needed, you can help more clients secure the long-term care protection they deserve.
Need help finding the best LTC solutions for your clients? Book a call with us to discover how we work together.