The California Partnership for Long-Term Care requires insurance agents to complete special education requirements in order to be authorized to sell Partnership policies. This education requirement is above and beyond that required by the California Department of Insurance. This additional expertise is important because Partnership policies are linked with the state Medi-Cal program. The training keeps the agent up to date on changes to federal and state laws affecting the policies and you.
However, training alone does not make a good agent. You want an agent who is a genuine listener, an educator and a problem solver.
An agent who is a professional does not focus on “selling" you a product. The primary focus is to identify your concerns and help establish your goals and needs. The agent must be knowledgeable about how Medicare, Medi-Cal and long-term care insurance work and be able to clearly explain them to you. As a problem solver, the agent assesses your objectives and financial situation to determine appropriate options for you to consider.
Ultimately, you want an agent who you trust to be honest, qualified and reliable. The right agent can help you develop the best strategy for your situation and give you and your family peace of mind.
Choosing an Agent
Agents referred by friends or family are a good starting point. Go a step further and check with the Department of Insurance,
www.insurance.ca.gov. Ask the agent for their credentials and how long they have been in the business. Always speak with several agents before making your choice.
What to Ask
Long-term care insurance is a big investment. Knowing the right questions to ask increases confidence and assurance that this policy is the right choice.
- What is the history of the company, their current rating and reputation?
- What physical conditions may exclude or limit the benefits of my policy?
- Under what conditions can a company cancel my policy?
- Will benefits be paid if the policyholder is out of the state or country?
- What is the minimum or maximum age for buying this policy?
- How much does this policy pay per day for a nursing home, home health care, adult day care, etc.?
- How long will benefits last?
- What is the maximum lifetime benefit of the policy?
- How long is the waiting period before benefits kick in?
- Does this policy require a prior nursing home stay for home health care coverage?
- Has the company ever raised premiums on any long-term care policies they sold?
What to Avoid
Beware these common "warning signs" when purchasing long-term care insurance:
- An agent who does not have your best interests in mind
- Bait and switch tactics
- Guarantee that your rate will never increase
- Not knowing a company's rating
- The pitch that their policy has been approved by the Department of Insurance when it hasn't
- The pitch that their policy has a special 30-day review and return policy (all policies have that feature)
- A marketing tactic called "twisting," where an agent may present a misleading comparison of policies to make a buyer purchase a different policy
- Agents who work for multiple companies may say the best policy suited for you is the one where they make the most commission
- High pressure tactics
