What disqualifies you from long-term care insurance? Among seniors, long-term care insurance, also known as LTCI, is an essential part of their financial planning. This is because this form of insurance covers the associated costs of long-term care services. For instance, services provided in an assisted living facility, a nursing home, or through in-home care as well as help with regular routines like eating, bathing, and dressing.
Moreover, as people grow older, they experience health issues or challenges, and getting a long-term care insurance policy can be a beneficial step to making sure that they get sufficient care services and are financially protected. On the other hand, some specific conditions and factors can disqualify a person from getting this type of insurance. In this blog post, we will learn What Disqualifies You from Long-Term Care Insurance.
What is Long-Term Care Insurance?
Long-term care insurance is a form of coverage that offers services and assistance required when a person is no longer able to perform the necessary daily activities because of a disability, chronic illness, or age-related conditions. Unlike traditional health insurance that covers critical medical care, long-term care insurance pays attention to the extended care services expenses that are not typically covered by Medicare or a standard health insurance policy.
What Disqualifies You from Long-Term Care Insurance?
As previously mentioned, there are multiple factors responsible for disqualifying an individual from long-term care insurance. They are as follows:
Current Health Status
An individual who has experienced a major health crisis or already needs long-term care insurance might be considered a high-risk applicant. Therefore, you will either be given a policy with limited benefits and higher costs or will be denied coverage.
Age
Although a person’s age is not an automatic disqualifier, advanced age can significantly affect eligibility. However, insurance providers might be doubtful when it comes to offering coverage to way older people.
Pre-existing Conditions
People with specific pre-existing conditions like chronic illnesses, significant disabilities, or cognitive impairments might be unqualified to get coverage from long-term care insurance or might get higher premium amounts.
Unstable Health Conditions
Individuals with different or unstable health conditions and who need regular medical interventions might be disqualified for long-term care insurance. This is because they are considered high-risk by insurance companies.
Terminal Illness
Applicants who are terminally ill might be unqualified for this form of coverage because the main objective of this quote is to offer long-term care needs coverage and not end-of-life care.
Criminal History
If it shows on your record that you have been convicted of a crime, insurance providers might reject offering coverage.
Who is Eligible?
As mentioned earlier, long-term care insurance offers medical and non-medical service costs coverage for individuals who no longer can take care of themselves. Hence, to be eligible or qualified for such coverage, you need to provide proof that you are no longer capable of performing at least two of the daily activities listed below:
- Eating.
- Bathing.
- Toileting.
- Continence.
- Transferring or moving.
- Dressing.
Many insurance companies receive certification from reputable health service providers.
How to Avoid Being Disqualified from Long-Term Care Insurance
If you would like to increase your chances of being qualified or approved for long-term care insurance, here are some helpful strategies to use:
- Maintaining a good health status.
- Apply early.
- Explore different insurance companies.
- Be transparent and honest.
- Ensure all details are accurate.
- Consult a professional insurance specialist.
With help from these steps, you can get favorable terms and qualify for long-term care insurance from any insurer or insurance company.
Alternatives to Long-Term Care Insurance
If long-term care insurance is not a suitable option for you or you are not able to qualify, here are some alternatives to consider:
- Medicaid.
- Health Savings Accounts (HSAs).
- Short-term care insurance.
- Staying healthy.
- Annuities with long-term care (LTC) riders.
- Selling your home to cash in on its home equity.
- Selling your life insurance policy.
- Tapping into the living benefits on a life insurance quote.
- Consider asset-based insurance.
- Self-fund with savings.
- Getting deferred lifetime annuity.
- Home equity loan.
- Reverse mortgage.
Although you do not necessarily need a long-term care insurance policy, you need to have a source to cover services that you will need if you are suffering an age-related illness or injury.
Frequently Asked Questions (FAQs)
What are the typical costs associated with long-term care insurance?
The cost of long-term care insurance differs depending on factors like health, policy features, age, and health. Nevertheless, the premium amount can be a few hundred to several thousand dollars per annum. The insurance company you choose also affects the cost of getting long-term care insurance coverage.
Can I still get long-term care insurance if I have a pre-existing condition?
Even if having a pre-existing condition makes it 2x harder and more challenging to get long-term care insurance, it does not disqualify you automatically. Besides, insurance providers might provide coverage with specific conditions, higher premiums, or exclusions based on your overall health.
Is there an age limit for applying for long-term care insurance?
Most insurance providers provide long-term care insurance to people between the age range of 40 and 85. Meanwhile, the eligibility for long-term care insurance becomes harder as you age, and the premiums might increase as well.