Disability Insurance Training
The following resources below are available FREE for your use and cover the basic and intermediate training levels of Disability and Long Term Care insurance. Complete the training below and then join Broker Services!
Basic LTC Concepts Explained
States that are participating in the Long Term Care Partnership Program have special continuing education requirements that need to be done before an application is solicited and signed. If you have any questions on specific state requirements please contact our office.
Long Term Care Basic Concepts
Here we outline the basic concepts primarily related to Individual Long Term Care Insurance. The most fundamental idea is that long term care insurance establishes an instant pool of funds to be used to pay some of the costs of a long term care event and save the client’s assets from invasion. A good retirement plan should include a contingency for such an event as statistics tell us that 60% of Americans will receive some form of long term care in their lifetime. The purchase of long term care insurance helps to transfer some of that risk so clients can maintain their lifestyle and expenses should something happen down the road. For more supporting facts and statistics please contact our office.
Cost of Long Term Care
The cost of services for care in the home, community, in an assisted living or nursing home settings varies greatly by geographic location. To determine what the costs are in your client’s area please contact our office.
Definition of Disability
The Health Insurance Portability and Accountability Act of 1996 created a “tax qualified” criteria for individual long term care policies and most products available today conform to those guidelines. A tax qualified policy is considered health insurance by the IRS and holds no cash value. Most policies have the same definition of disability:
You must be unable to do 2 of the following 6 Activities of Daily Living (ADL’s) without substantial supervision or hands on assistance. “Activities of Daily Living” means any of the following:
- Bathing: Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower.
- Dressing: Putting on and taking off all items of clothing and any required braces, fasteners, or artificial limbs.
- Transferring: Moving into or out of a bed, chair or wheelchair.
- Toileting: Getting to and from the toilet, getting on and off the toilet, and performing related personal hygiene.
- Continence: Ability to maintain control of bowel and bladder function; or, when not able to maintain control of bowel or bladder function, the ability to perform related personal hygiene (including caring for catheter or colostomy bag).
- Eating: Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by feeding tube or intravenously
OR
- You have a “Severe Cognitive Impairment” which means a deterioration or loss in intellectual capacity that: (a) places you in jeopardy of harming yourself or others and you require substantial supervision by another individual; and (b) is measured by clinical evidence and standardized tests which reliably measure impairment in: (1) short or long-term memory; (2) orientation to people, places or time; and (3) deductive or abstract reasoning.
AND
- This condition is certified by your physician and expected to last 90 days or longer.
Benefit Amount
How much benefit purchased is a key consideration when designing a policy. Benefit amounts are available on a daily or monthly basis and range from $50/day ($1500/month) to $400/day ($12,000/month).
Benefit Payout
The method in which benefits are paid and what the policy covers are the key factors in distinguishing one long term care policy from another. There are usually 4 basic choices:
- (Least expensive) Reimbursement
- Daily Benefit - reimburses covered expenses up to a daily limit.
- (Moderate) Reimbursement
- Monthly Benefit - reimburses covered expenses up to a monthly limit (no daily limit-expenses can vary per day).
- (Moderate) Indemnity
- Daily Benefit - pays a cash payment for daily limit if care is received, regardless of the cost of care.
- (Most Expensive) Indemnity
- Monthly Benefit (cash) - pays a cash payment for full monthly amount, regardless of actual costs of care.
The client can choose the payout method that suits their particular plan and what they desire to occur if faced with a long term care event. Note: Most policies sold are in the benefit payout form of Monthly Reimbursement.
Premium Deductibility
Premiums for individual long term care insurance may be deductible to non-business owners and are deductible either fully or partially to business owners. For more information please contact our office.
DI and LTC Training Courses
DI Training
- An Overview of the Point of Sale
- Basic DI concepts explained
- Glossary of DI definitions
- How to be Successful Selling DI
- Protecting Assets
- Policies and their Benefits
LTC Training
Disability Training Manual
What every Agent, Broker or Financial Planner should know about the Disability Income Protection World!
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The Disability Income Training Manual, authored by Michael J. Eskra CLU, RHU, discusses the most pertinent aspects of disability income planning. This comprehensive manual provides sales and marketing ideas that will prove helpful to just about anyone who markets disability income insurance to their clients. The complete manual is available to you for only $49.99.
"If you are interested in improving your knowledge if Disability Income Insurance, then I strongly recommend that you purchase the excellent book authored by Michael Eskra which is the most authoritative and informative book on Disability Income Insurance to be published in the last 50 years."
- Ken Wylie, nationally renown lecturer, teacher and trainer who has conducted thousands of training seminars in disability insurance.