Rejected for LTC

[Specialagent]

My client has been rejected for LTC because she has a neurological condition called Neurofibromatosis. Are there any carriers that might be willing to take her on? Thanks.

 

[ksigmtsu]

Seems highly unlikely because of the effects of that medical condition.

 

[BNTRS]

Here's the deal with LTCi, there really aren't a sub-standard carriers like there is in life and even in some degree DI. Critical care insurance might be an option. But a decline with one, is very likely a decline with others.

 

[Fisher]

Don't know if this would help at all but MoO has a new-ish annuity product out that provides for up to 3x the premium to be paid out for LTC expenses.

Example: 100k put into annuity, 300k available for LTC. And if you use up the 100k the beneficiary gets a dollar.

You'll have to Google it... I just recently heard about it and have no further info.

 

[Mr_Ed]

Here's the deal with LTCi, there really aren't a sub-standard carriers like there is in life and even in some degree DI. Critical care insurance might be an option. But a decline with one, is very likely a decline with others.

You're correct in saying that there is no such thing as a sub-standard LTCi carrier. There was and it went bankrupt! The PA DOI is paying the claims now.

But, the statement, "... a decline with one, is very likely a decline with others" is INCORRECT.

I've had people who have been declined by two or three different LTC insurers but I was able to get them approved by different "top 10" LTC insurers.

Each long-term care insurer has a very different underwriting guideline.
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NF is an autodecline from every company I'm aware of.

 

[CALTCAgent]

"You're correct in saying that there is no such thing as a sub-standard LTCi carrier. There was and it went bankrupt! The PA DOI is paying the claims now.

But, the statement, "... a decline with one, is very likely a decline with others" is INCORRECT.

I've had people who have been declined by two or three different LTC insurers but I was able to get them approved by different "top 10" LTC insurers.

Each long-term care insurer has a very different underwriting guideline."

I think he is CORRECT, that a decline with one is VERY LIKELY a decline with others.

That being said, its a possibility they can get accepted by another carrier. I don't believe its VERY LIKELY in most cases.

The long term care underwriting guides have more similarities than differences. There are differences though. For example height/weight guidlines vary a few lbs., waiting times for certain conditions can be a little different, etc.

Thanks!

 

[BNTRS]

Ok, let me clarify, LTC carrier don't appear to decline like life underwriting does simply because they find a decline at a different company. But often times, the reason you got declined by one, will be the reason you got declined at another.

Not saying it's impossible to do, sure it works from time to time, and you can't get a yes if you never ask.

The appriopriate process is to look at underwriting practices at as many carriers as possible, but as we agree, there really isn't a carrier out there known for being the source for declined cases to go.

 

[yankee466]

Don't know if this would help at all but MoO has a new-ish annuity product out that provides for up to 3x the premium to be paid out for LTC expenses.

Example: 100k put into annuity, 300k available for LTC. And if you use up the 100k the beneficiary gets a dollar.

You'll have to Google it... I just recently heard about it and have no further info.

As an FYI, the linked benefit plans also are fully underwritten. In general, if you can not get traditional LTC, you will not qualify for either LTC/Annuity or a UL-WL/LTC combo either. There are subtle differences, but in general, this is the case. You will find one knock out question on the MoO annuity as I recall ==> "Have you been turned down for LTC?"

 

[Mr_Ed]

As an FYI, the linked benefit plans also are fully underwritten. In general, if you can not get traditional LTC, you will not qualify for either LTC/Annuity or a UL-WL/LTC combo either. There are subtle differences, but in general, this is the case. You will find one knock out question on the MoO annuity as I recall ==> "Have you been turned down for LTC?"

Good point, Yankee.

Well said.
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The long term care underwriting guides have more similarities than differences. There are differences though. For example height/weight guidlines vary a few lbs., waiting times for certain conditions can be a little different, etc.

Here are some recent results we've had that demonstrate how much LTC insurers differ in terms of their underwriting:


#1: Woman was declined by a top long-term care insurer because of an "abnormal MRI". She was perfectly healthy otherwise. She was an auto-decline by nearly every other LTC insurer because of that "funny MRI". We found one of the top 10 LTC insurers who said they would consider her. They approved her with standard rates.


#2: Gentleman who was about 70 lbs. overweight AND had COPD AND had asthma AND had sleep apnea requiring CPAP use. He was declined by 3 different long-term care insurers (one of them was a group policy he'd applied for.) He was an auto-decline from nearly all of the top 15 LTC insurers. I found 2 companies that said they would consider him. He was approved with substandard rates by one of them and standard rates by the other.


#3: Gentleman who was declined by one of the top long-term care insurers because he had coronary artery disease AND carotid artery disease. His carotid artery was 49% blocked. The combination of coronary AND carotid artery disease made this made an auto-decline by nearly every leading LTC insurer (except one). He was approved with substandard rates.


#4: A recent case with a man who is diabetic and had a heart valve replaced last year along with a coronary artery bypass graft done last year. He was declined by two of the top ten long-term care insurers. He is an auto-decline from nearly every other top ten long-term care insurer, except for one. He was approved with "class 1" rates by one of the top long-term care insurers.


#5: A recent case of a woman who had an unusual blood disorder called "sticky platelet syndrome." Her financial advisor recommended one of the top long-term care insurers for her and she was declined. After that she contacted one of my associates and we got "pre-approval" from two of the top 10 long-term care insurers. She was approved with 'substandard' rates by one of them. But, believe it or not, she was able to get the preferred rates from the other. So, not only was she approved, but she was approved with a quote that was 20% lower than what we had quoted her.


Being declined by one long-term care insurer means ZILCH.


Check out:

Get Approved for Long Term Care Insurance




sao

 

[sgriswold]

As an FYI, the linked benefit plans also are fully underwritten. In general, if you can not get traditional LTC, you will not qualify for either LTC/Annuity or a UL-WL/LTC combo either. There are subtle differences, but in general, this is the case. You will find one knock out question on the MoO annuity as I recall ==> "Have you been turned down for LTC?"

The John Hancock and Lincoln Financial hybrid plans have minimal underwriting. I've gotten clients set up with these that were otherwise ineligible for regular LTC.