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Re: Price of LTC Insurance

Posted by Sandy Metry on August 30, 2001 at 02:04:27:

In Reply to: Re: Price of LTC Insurance posted by Scott A. Olson on August 07, 2001 at 10:00:51:

: James, there are a few LTC insurers that do allow you to buy "direct". For example, you can go to the John Hancock website or call up their LTCi hotline and get a quote and even apply for the coverage right over the phone. However, the rates are no different than if you were to apply with an agent.

: There are costs involved in marketing. Any insurer, in this case, John Hancock, has a cost involved in marketing the product. In the case of using an agent, the company pays the agent for marketing the product. In the case of calling them directly, they still have to pay the person who picks up the phone, gives you the quote, and handles the application process. They also have to train that person, pays his/her benefits etc... In many cases, it is cheaper for the insurer to use an agent because they do not have to pay the agent any benefits, or workers comp, office space and supplies, etc.

: The other reason that rates are the same whether you "buy direct" or through an agent, is because the rates are filed with each department of insurance. It would be illegal for them to charge different rates for the same product.

: The best and cheapest way to buy LTCi is to work with someone who represents several, leading, long term care insurers, get multiple quotes, and comparison shop. That alone can save you hundreds of dollars per year in premium.

: Scott A. Olson

Scott, if I have already talked to an agent in my home, but am doing research on that particular company for further support/credibility, then that foregoes the possibility of an independent agent (such as yourself) realizing any compensation? Am certainly not questioning entitlement for time/knowledge/information, just am curious. Incidentally, are you the same Scott Olsen who played St. Matthews Little League in the 70's?

Follow Ups:

Re: Price of LTC Insurance : : James, there are a few LTC insurers that do allow you to buy "direct". For example, you can go to the John Hancock website or call up their LTCi hotline and get a quote and even apply for the coverage right over the phone. However, the rates are no different than if you were to apply with an agent. : : There are costs involved in marketing. Any insurer, in this case, John Hancock, has a cost involved in marketing the product. In the case of using an agent, the company pays the agent for marketing the product. In the case of calling them directly, they still have to pay the person who picks up the phone, gives you the quote, and handles the application process. They also have to train that person, pays his/her benefits etc... In many cases, it is cheaper for the insurer to use an agent because they do not have to pay the agent any benefits, or workers comp, office space and supplies, etc. : : The other reason that rates are the same whether you "buy direct" or through an agent, is because the rates are filed with each department of insurance. It would be illegal for them to charge different rates for the same product. : : The best and cheapest way to buy LTCi is to work with someone who represents several, leading, long term care insurers, get multiple quotes, and comparison shop. That alone can save you hundreds of dollars per year in premium. : : Scott A. Olson : Scott, if I have already talked to an agent in my home, but am doing research on that particular company for further support/credibility, then that foregoes the possibility of an independent agent (such as yourself) realizing any compensation? Am certainly not questioning entitlement for time/knowledge/information, just am curious. Incidentally, are you the same Scott Olsen who played St. Matthews Little League in the 70's?

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