Underwriting of Long Term Care Insurance

[Giselle Garcia]

Hi everyone. Is it possible for an insurance company to sell a policy to an individual with a pre-existing condition? For example, a 45-year-old would like to buy a policy but she is diabetic. I understand that each LTCI carrier has its own underwriting but I'm curious as to how stringent this underwriting is.

I'm looking forward to your kind response. Thank you in advance.


Best Regards,
Giselle

 

[Arthur Rudnick]

Hi everyone. Is it possible for an insurance company to sell a policy to an individual with a pre-existing condition? For example, a 45-year-old would like to buy a policy but she is diabetic. I understand that each LTCI carrier has its own underwriting but I'm curious as to how stringent this underwriting is.

Hi Giselle, welcome to the forum.

Here's a simple answer to your question:
It depends..............

As you correctly state, every company looks at medical conditions differently. Some will insure, some won't and some may consider offering a policy, but it could be rated.

Here's what carriers look for when dealing with a diabetic:
1) At what age was the applicant diagnosed with diabetes? Some carriers will not insure someone with juvinile diabetes (diagnosed under the age of 25)
2) Is your prospect on insulin and if so, how many units a day?
3) What is the blood sugar levels and are they stable?
4) What is their A1C level?
5) Are there any complications with their diabetes?

If the person has been diagnosed more than 6 months ago and he/she is on oral meds, with blood sugar levels stable and under 200, with an AIC less than 8.0, there's a pretty good chance he/she would be insurable with all carriers at a standard rate.

Keep in mind that weight & height is also a big issue for diabetics.

So, what you need to do is ask your clients the above questions and call a company's underwriting hot line and see what they have to say.

Good luck and let us know how it turns out.

 

[Giselle Garcia]

Thank you so much Arthur for your quick and very helpful response. This question just sprung to mind as I remembered Dr. Marion saying in last year's LTC campaign dubbed 3 in 4 need more you pay what you negotiate for. I personally know people who have had diabetes since the age of 20 and now that they are moving towards 50 they remain without a concrete plan for their future because they refuse to look into an LTCI policy. They said insurance companies will surely decline them given their condition.

 

[Arthur Rudnick]

They said insurance companies will surely decline them given their condition.

The only way to find out is to submit an application. But, you need to pre-qualify them first with an underwriter.

 

[Mr_Ed]

Thank you so much Arthur for your quick and very helpful response. This question just sprung to mind as I remembered Dr. Marion saying in last year's LTC campaign dubbed 3 in 4 need more you pay what you negotiate for. I personally know people who have had diabetes since the age of 20 and now that they are moving towards 50 they remain without a concrete plan for their future because they refuse to look into an LTCI policy. They said insurance companies will surely decline them given their condition.

That is a common misconception that diabetics are uninsurable. Probably 20% of my clients purchased their LTC insurance policies AFTER they were diagnosed with diabetes.

It all depends on how well they are managing it.

I recently had a type 1 diabetic approved for LTCi with standard rates from a great company. He takes 45 units of insulin per day.

The better they manage it, the more likely they'll get approved with a good rate.

mred

 

[billberry12]

Also, don't forget that if they use tobacco, or have had any heart problems, they are not insurable.

 

[ltcadviser]

Diabetes and Long Term Care Insurance - LTC Partner

 

[Mr_Ed]

Also, don't forget that if they use tobacco, or have had any heart problems, they are not insurable.

...actually, Bill, 3 of the top 10 LTC insurers can take someone who is diabetic and uses tobacco. he/she would most likely be rated.


mred

 

[billberry12]

Name them please. I am always open to learning new information.

 

[Mr_Ed]

Name them please. I am always open to learning new information.

ask your upline.

;-)