Although long-term care insurance is still in search of traction in the worksite market, brokers and agents who sell the product need to be mindful that they are complying with state insurance laws.
Agents are require to provide up-front disclosure that LTC premiums could rise in the future, particularly if the policy features many bells and whistles, and such disclosure also is required by insurance brokerage firms.
So says Anthony Domino Jr., a Rye Brook, N.Y.-based financial planner and past president of the Society of Financial Service Professionals, who recently said these steps are critical regardless of how uncomfortable they may be for advisers.
He noted that the California Department of Insurance found major players in the LTC arena have raised premiums as much as 25% during the past five years. They include John Hancock Life Insurance, Allianz, Bankers Life, Genworth, Monument Life, Mutual of Omaha, Transamerica and UNUM, while Prudential and MetLife are expected to follow suit for certain blocks of clients.
