Q. I’m in a state where LTC partnership policies will be soon introduced. What information and advice can you provide about who should buy these policies, who needs to take the training and other important details?
A. If you have not been hearing about partnership policies being introduced in your state, you probably will soon. I heard a projection that about eight new states will be rolling out these plans every year. Provided below are some frequently asked questions about partnership-qualified policies.
Who should buy partnership policies?
1. First, determine what coverage the client needs. If the appropriate coverage fits PQ, then always sell it. There should not be a downside to selling that policy in this situation. If the coverage best suited for the client does not fit PQ requirements, then both should be presented to the client; and the client must decide which he wants. The agent needs to present the pluses and minuses of each. In any event, the agent should document what was explained to the client to minimize E&O exposure. (Ed Hutman, Agent, Rockville, Md.)
2. Not all clients are good candidates for a partnership policy, especially if they have a higher net worth or significant income expectations. Those clients are usually better off with an LTCI policy that has been designed to meet their unique needs and expectations, not those guidelines established by the state. (Scott Boyd, LTC Director at TNBC)
What are the agent training requirements?
In most states, agents are required to take eight hours of partnership training and four hours of renewal training every two years. Some states and carriers require anybody who sells LTCI to take this training, while others are requiring just those who sell partnership plans.
Who is required to take the training?