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Long Term Care Insurance Career

What is Long Term Care Insurance?

long term care insurance careerBefore an agent starts an insurance career in long term care insurance they must understand what it is and how it works. Long term care insurance is a type of insurance that can assist the insured with paying for long term care such as nursing homes, assisted living, adult day care, home care and more. Long term care insurance policies take affect when the insured begins to need assistance with everyday living activities and can cover things that health insurance does not cover.

Long term care policies are primarily paid out in two ways. The first is reimbursement, where the insured pays for their bills up front and then the insurance company pays them back. The other is indemnity where the insurance company pays the maximum benefit up front and the insured spends the money however they see fit. Policies do have exclusions, so an agent with an insurance career in long term care insurance must be aware of these and advise his or her client appropriately.

Why Choose a Long Term Care Insurance Career?

Long term care insurance is a growing insurance field because the population is aging. Roughly 10,000 Americans are turning 65 every day and many of them will need long term care because most Medicare plans will not cover their long term care expenses. For an agent with an insurance career in long term care insurance, these prospects mean that there is a tremendous sales opportunity. Carriers offer several different commission structures, but on average agents can make 30%-70% commission on the premium for the first year and 4%-6% on the premium for the remainder of the life of the policy.

Who Would Excel at a Career in Long Term Care Insurance?

Those interested in an insurance career in long term care insurance need to be self-motivated and thrive in a dynamic environment. To be successful in a long term care insurance career, an agent needs to learn the ins and outs of the policies they are selling and work to understand and listen to the specific needs of their clients. Long term care insurance sales require strong sales and marketing skills to acquire clients and sell policies, but once the policy is sold there is little service that needs to be done.

There is usually no requirement for a college degree when choosing an insurance career in long term care insurance. However, an agent must prepare for and pass a state Life and Health Insurance exam to obtain a license to sell long term care insurance before he or she can start writing business. In some states you may also need to register your fingerprints. The section below outlines how to get started in an insurance career selling life insurance.

How to Start a Career as a Long Term Care Insurance Agent (varies by state)

  1. Complete Pre- Licensing Education: Learn the rules and regulations of your state’s insurance industry. You may be required to attend classes, but some states allow you to study at your own convenience. You will be issued a certificate for completing these state certifications and at that point you are permitted to take the state exam to become licensed as a long term care insurance agent.
  2. Take the State Life and Health Insurance Exam: Contact your state’s insurance department to find information on your state’s requirements and local testing centers.  In addition to the self-study option, there are in-person and online schools/courses that you can attend. Once you have completed the course, bring the course completion certificate to the testing center on the day of your exam.  After you have successfully completed the state life and Health insurance exam and paid the licensing fees, you are then issued a health insurance agent’s license.
  3. Buy Errors and Omissions Coverage:  As an insurance agent, you are required to have Errors & Omissions insurance. This liability policy protects you and your career against financial loss related to your involvement in the sale or service of a long term care insurance policy.
  4. Get Established:  To start your insurance career and begin selling long term care insurance, you can decide to work for an established agency as a captive agent (employee of an insurance company) or choose to work through a broker. Many agents find that working through a brokerage firm such as a National Marketing Organization or a National Marketing Alliance (NMA) typically provides greater opportunities for success because they offer sales, marketing and compliance support.
  5. Get started: Your insurance career starts NOW! Contact us to launch your career as a Long Term Care Insurance agent today.