I've always told potential clients that if you wait to long to buy long term care insurance, you may loose your health and the product may no longer be available. I just had an experience with a client that enlightened me to another reason not to wait.
My client purchased a nice size policy about four years ago. She had hepatitis C, not treated. The company I placed her with accepted the application and she's been covered since then. Just recently, she called me to inquire about having her coverage increased. When you increase your coverage on an existing policy, you must still go through medical underwriting.
Unfortunately, since she purchased the insurance, the underwriting standards have become more strick and the company no longer found the client "insurable." Had this client waited until this year to purchase coverage, she would not be able to get insurance.
Therefore, it is not only your health that may change and make you insurable, underwriting standards may become more strict also making you insurable. With the millions of baby boomers entering their senior years, companies know their risks are going up and I wouldn't be surprised if underwriting standards become even more strict over the years.
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This is so common, it's sad. People put off not only LTC Insurance, but Life insurance and Health insurance as well. As the old bad joke goes, what's the one thing you can't get when you need it the most? Insurance! At least you got her something Corinne!
ReplyDeleteColleen King
www.AskColleenKing.com