A Step by Step Guide: Navigating the Qualification Process for LTCI

You can’t just walk up to a counter and buy one of these. Like disability income insurance, long term care policies have to be earned. It’s a process to qualify. This is how the qualification process for LTCI goes:

(1) The first thing is to determine suitability. Are there assets to protect. Is there a family or community to protect.
(2) Health status data is submitted anonymously to insurers for a predetermination of medical eligibility. (We do this to help our clients avoid being declined because it goes into your permanent record.)
(3) Select a plan of coverage that is affordable. (We use spreadsheets that include different plans from different insurance companies.
(4) Submit the application. (These days, it is all done electronically)(We include a cover letter to give the underwriter a sense of who the applicant is, why the insurance is suitable and why they want the protection.)
(5) There will probably be a telephone interview to review medical information, family history of medical conditions and cognitive skills. There may be a paramedical exam by a nurse. (We prepare the applicant in advance of what to expect and information to have available – doctors names and contact, driver’s license, existing insurance, etc.)
(6) The underwriter may request medical records from providers. (We ask the applicant to give the doctor a ‘heads up’ that the request will be coming and please expedite the request. It’s not uncommon to experience a delay without a gently nudge from the applicant.)
(7) Information will be requested from the Medical Information Bureau (MIB). They store all medical data including doctor’s notes. ( After you meet with doctors, always ask for their notes, and edit off hand remarks that you don’t want on your record and are not pertinent to your medical history.)
(8) The insurance company assembles all your data and determines if they will make an offer for coverage. The offer may be to accept the application as submitted or they may reduce the coverage due to conditions they feel are risky.
(9) Now it’s your decision. Do you take the offer and pay for the policy or not.
(10) Most importantly, tell your family and close friends that you have a long-term care insurance policy. Include your doctor, lawyer and other key professionals. You can’t be sure you will remember that you have the coverage when the time comes to use it. Store the contract with your will and other important document.
(11) Thank your insurance broker for getting this done for you and your family.

Consult with a Certified Long-Term Care specialist like Jim Better to better understand the qualification process for LTCI, schedule a call: www.calendly.com/jimbetter. Find more resources in our blog.

Pin It on Pinterest