Most Long Term Care Insurance Agents Up-sale Too Much

(Below is a email exchange about a common problem I've noticed recently with aggressive long term care insurance agents pushing huge plans for clients that can lead to paying up to 100% more in premiums than they should be paying.)

LTCtree: I noticed you are requesting 6k/month and unlimited benefit period which typically is too much long term care insurance coverage, what is your thought process in selecting those rich benefits? 

Client: The unlimited benefit period and $6000 per month were suggested  by other agents we've been talking to. They say that in most cases $200 per day is required. What other areas do you think is to much?

LTCtree: I’ve been in the LTC business for about 11 years, but also hold my securities license and help invest people’s money as well.  What I’m getting at is I can see both the insurance side and the investment side.  Sure it would be great to have a huge LTC plan that covers 100% of the risk, but you have to pay for it.  I think in most cases there is a balance that can be achieved between insurance and investments;  you could have had that money that you paid for the huge LTC plan working for you in a well managed mutual fund, etc.  True some nursing homes in MD may cost $200/day, but about 85% of all claims that are paid out by the insurance companies are for Home Care and Assisted Living which are typically less than N Homes.  5k/m might be a better fit and would save you about 20%.  Also, the unlimited benefit period is something you may consider dropping down a bit for 92% of all LTC claim last for 3yrs or less.  Food for thought.

An unlimited long term care insurance plan may be right for a select few, but we're seeing way too many agents pushing these huge plans that sound great on paper, but severely hurt your wallet.  At LTCtree we will help you funnel down all the options to find the appropriate amount coverage at the right price.  Take a second to fill out the form below and we'll send you your quotes.