Strategies for Assisting Clients Through the Long-Term Care Insurance Underwriting Process

As underwriting for long-term care insurance (LTCI) continues to evolve, agents play a crucial role in guiding clients through the application process and improving their chances of approval. By educating clients, pre-screening health risks, and positioning alternative solutions, agents can help applicants secure the best coverage possible.

1. Educate clients on the importance of applying early.

• Encourage clients to apply sooner. The best underwriting outcomes occur for applicants between 50 and 60 years old, before significant health issues arise. If your client is younger and the premiums are more affordable, that’s even better.
• Explain the risks of waiting. Help clients understand that delaying can result in higher premiums, limited benefits, or outright declines.
• Use case studies. Share real-life examples of applicants who benefited from applying early versus those who faced denials due to waiting too long.

2. Conduct a pre-screening process.

• Ask key health questions upfront. Gather information on medical history, medications, BMI, and any chronic conditions to assess insurability.
• Use carrier-specific guidelines. Each insurer has different underwriting criteria, so it’s important to check multiple carriers and match clients to carriers based on their health profile. One carrier may decline an application, whereas another may accept your client.
• Identify red flags. Be aware of conditions like Alzheimer’s, Parkinson’s, stroke history, or multiple ADL limitations that can lead to automatic declines.

3. Guide clients to improve their health profile.

• Encourage lifestyle changes. Recommend weight management, smoking cessation, and regular exercise to help applicants qualify for better rates.
• Suggest managing chronic conditions proactively. Clients should have well-documented medical records showing controlled blood pressure, cholesterol, or diabetes.
• Advise on medication management. Help clients understand that unnecessary prescriptions or inconsistent use of medications may raise red flags.

4. Be ready to pivot to alternative LTC solutions.

• Explore hybrid policies. If a client has borderline health concerns, a life insurance policy with an LTC rider or an annuity-based LTC plan may be a better option.
• Leverage employer-sponsored or association plans. Some clients may have access to group LTCI plans with simplified underwriting.
• Consider short-term care insurance. For clients who don’t qualify for traditional LTCI, short-term care policies offer limited but valuable coverage.

5. Prepare clients for the underwriting process.

• Set realistic expectations. Explain that underwriting may include medical records reviews, phone interviews, and cognitive assessments. Your clients should take these interviews seriously and complete them when they are at their best.
• Help clients gather medical records. Encourage them to ensure their health history is accurate and up to date. Some carriers will postpone an application if information in your client’s medical records is inaccurate.
• Coach clients for cognitive screening. Simple steps like staying well-rested, avoiding distractions, and being prepared can help them perform better in cognitive assessments.

Agents serve as vital guides in helping clients navigate the LTCI underwriting process. By educating clients early, pre-screening health risks, recommending lifestyle improvements, and positioning alternative solutions, agents can improve approval rates and ensure their clients receive the long-term care protection they need.