As you face your future, you likely are interested in exploring the possibility of purchasing a long-term care insurance policy. You are aware of the costs associated with requiring help for even the most basic of daily activities and increasing medical treatments as people age and want to take proactive action to be insured for that eventuality. However, after a meeting with an insurance agent, you have been informed of a worrisome fact: you do not meet the requirements to be eligible to get a long-term care insurance policy. Read the URL here to find out more about your options after a denial. However, it is important to know that you can increase your chances of obtaining a long-term care policy by applying while you are in your mid-50s.
Here are some options if your agent has informed you that you do not qualify to purchase this policy.
Get a Second Opinion
Your agent might not have asked the right questions, or there was something inaccurate in the process. Talking to a different company or looking for an agent who has more experience in these types of policies may yield a different result. An independent agent representing several insurance companies may suggest options you had not previously considered.
Consider a Hybrid Policy
Some policies offer a mix of life insurance and long-term care. With this option, you get a death benefit that can have its face value turned into long-term coverage. In other words, if you end up needing long-term care, the policy would cover your medical expenses, although your death benefit would be reduced accordingly. On the other hand, if you do not end up needing long-term care, your beneficiaries will receive the full death benefit.
Wait and Re-apply
If you are currently experiencing some health issues, they may have been the reason why the policy was denied. By giving it some time and allowing the condition to be in your past, you may qualify for a policy in the future. Wait until your health has improved and apply once more.
Don’t Rush
Before worrying too much about the denial and rushing to get a quote from a different insurance company, take the time to find out the reasons why this coverage was denied. You may either uncover that some mistakes were made in your application or that the reason for the denial is related to the current state of your health. If that is the case, as stated above, wait a while and reapply. And if there are mistakes, call the agent and give them the correct information so that the application can be reconsidered.
Do Some Estate Planning
If even after all your best efforts and by trying different companies, you are still unable to qualify for the coverage you need, you may have to look elsewhere to prepare for the future. Talk to your lawyer or financial advisor about doing some estate planning. You may be able to transfer some assets into an account that will be used just for that purpose.
You may also have to consider other options, such as a reverse mortgage. Through a reverse mortgage, you can reduce the value of your estate and receive the money either in a tax-free lump sum or have a monthly stream of income to fund your healthcare needs. Upon death or the sale of the home, your estate will have the benefit of a tax deduction for the interest that was paid to the lender on the accumulated debt.
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