Before you sell Long Term Care Insurance, it is extremely important that you take the time to educate yourself not only on the various policies offered among competitors but also in understanding the very limited circumstances under which Medicare may cover some care in a skilled nursing facility.
One out of two people over the age of 65 will need some form of long term care, whether it is homecare, assisted living, nursing home care or a combination of the various levels of care.
Prequalifying Prospects for Long Term Care Insurance
Every interaction with a potential client creates the risk for a future E&O claim, especially when you do not exercise routine procedures.
If someone contacts you about Long Term Care Insurance, it is a smart practice to prequalify that person by telephone. Failing to make the time to prequalify a potential client could result in pursuing a sale that will never happen. It is in your best interest to manage your time and travel costs effectively. A prescreening phone call will also provide the opportunity to begin a professional relationship with the prospect(s).
You’ll want to ask if the person has ever been declined or rated-up for Long Term Care Insurance and the reason(s) why. All LTC Insurers do not underwrite the same, but the response to this question could present a red flag. You never want a potential client believing they are automatically eligible for a policy just because you had a conversation with them. A good E&O risk management procedure is to state, in writing, that the final decision for eligibility and premium remains with the Underwriting Department at the Insurance Company.