LTC Underwriting V.S. Life Underwriting

Long-Term Care and the cost of care can be overwhelming for most. In the past, traditional stand-alone LTC policies were the only way to insure long-term care expenses.

These days, there are more ways to obtain this valuable coverage – including LTC riders on Life Insurance policies.

Underwriting long-term care risks can be very different than underwriting for life insurance. LTCi underwriting takes into account medical impairments that impact ability to perform daily living activities. Whereas, life underwriting is more concerned about impairments that affect mortality, or life expectancy.
In some cases, your client may be eligible for life insurance at a favorable rate class, but may be rated or declined for long-term care.
This recent case study shows how different underwriting mortality vs. morbidity can be:
  • 62 year old female
  • Seeking $1 million of UL coverage with a Long-Term Care rider
  • Non smoker; normal build
  • Hypothyroidism diagnosed in 1980; well controlled on medication
  • Was seen once by a chiropractor for back pain with improvement
  • Diagnosed with scoliosis
Final underwriting decision: Super Preferred for life coverage; Standard for the LTC rider due to scoliosis and back pain history
Non-traditional long-term care insurance and chronic illness riders are the perfect solution for those impairments that would be declined for traditional LTC riders. These alternative riders are automatically available on eligible permanent products with little to no additional underwriting.
Whatever the case may be, there is a product we can pivot to, to cover long-term care needs. Contact your Underwriting Specialist, we’re here to help you sort through the different options and pre-qualify your client for this much needed coverage.