I Have Been Declined For
Long Term Care Insurance;
What Do I Do?
When someone asks “I have been declined for long term care insurance; what do I do?” they generally have already convinced themselves that they are doomed to financial ruin and a horribly inadequate level of care in their final days, months and possibly years.
However, this is not always the case. There are still options available.
Shop Around
First you need to consider why you have been turned down and if there are other companies on the market who may not decline you for the same reason. Each company has its own set of underwriting rules and while many outcomes are similar, there may be huge differences in each individual case from one company to another.
For example, if you have already been diagnosed with the early stages of Alzheimer’s disease, no long term care insurance company will offer you a policy.
However, if you had a heart attack four months ago, some companies may refuse you flat out, while others will suggest you come back within two months, when you are six months past the incident and they will offer you a policy. Sometimes these policies will exclude anything related to the prior condition, sometimes not. Therefore it often pays off handsomely to shop around to a variety of long term care insurance companies, even if you have already been refused by one.
Alternatives To Long Term Care Insurance
If looking for another company does not work for you or you would like to consider another way to preserve your financial assets should you need long term care, there are a variety of ways to do so. They involve self-insuring or using your own assets to finance your long term care.
Some of these methods will completely preserve your financial assets, while others will show you creative ways to access your money while still having the use of the assets which are important to you, like your home.
Annuities
The one which best preserves your net worth is annuities. They can be the single most important way to finance your long term care should you choose to not take out long term care insurance or if you can not get it.
If you have the liquid assets available you can set up an annuity with an insurance company, in which they pay you interest starting immediately or at a deferred date. It helps your tax situation in that tax is only paid on interest when you take it. There is also no diminishing of the investment. You receive a conservative return on the investment on a regular basis for as long as you live.
This is the perfect type of financial product to help pay for long term care if you can afford to tie up your assets in such a manner.
Cashing Out
You may also cash out your life insurance policy in order to get access to some of the money that would otherwise go to your estate. Doing this usually requires that you be diagnosed as terminal and allows you to sometimes use a portion of the death benefit while you are still alive.
A reverse mortgage may also be a good financial maneuver to help cover long term care costs. A reverse mortgage pays you a monthly amount based on the equity in your home. It means that your home will in all likelihood belong to the mortgage company when you pass on, but if leaving your home to other family members is not as important as other assets, then this is a good choice for self-insurance.
Use a Professional
Before making any decisions regarding your financial future and self-insuring your long term care, you should consult with a financial planner, who can best help determine the most effective and appropriate route to take.
He or she should also be able to inform you best as to the pros and cons of each product. He or she will also help you find the best provider should you choose to go with a reverse mortgage or annuity.
Do It Yourself
Of course the other way to pay for long term care is to do so yourself. By liquidating your personal assets you can pay for your own long term care if you need it, until your exhaust your finances.
It is comforting to know that if your spouse still lives in your home, it is protected. Once your assets have been used up, Medicaid will step in to pay for the care that is not covered by your monthly income.
While this is not the ideal solution, for numerous people this is the reality of what will happen. The woes of “I have been declined for long term care insurance, what do I do?” are easily put aside, especially when you take advantage of getting reliable quotes from companies who can help you.
Compare Long Term Care
Insurance Quotes Now!
Shopping around is always important to ensure you get the best policy available to you.
An easy way to do this is by using our long term care insurance quote tool located at the top of the page.
Enter your zipcode now to begin comparing long term care insurance quotes side by side!
