This recent case reminds all of us about the key differences in the underwriting of a life product versus Asset-based LTC. Read on for the details of how this case went from a decline to a win!
Case at a Glance
Underwriting Challenge: Extensive Medical Histories
Product Type: AssetCare
Benefit Amount: $10,000/month for Lifetime
Target Premium: $38,583
Situation
- We were working with a husband and wife, both 66-years-old, who were seeking a funding solution as part of their Care Planning strategy. Both clients have extensive medical histories, with multiple conditions presenting both mortality and morbidity concerns:
- Male Client: Orthopedic Conditions, including osteoporosis, plantar fasciitis, spondylosis of lumbar region. Other medical conditions including Asthma, Obstructive sleep apnea, deep vein thrombosis, vocal cord repair from paralysis, chronic interstitial cystitis and diverticulosis
- Female Client: Orthopedic Conditions, including recent diagnosis of Osteoporosis and arthritis and surgeries on both knees. Other medical conditions including Hypothyroidism with Thyroid cyst, Vertigo, insomnia, diabetes Type 2 and Hypertension
- An initial investigation identified a life insurance product with Long-Term Care benefits as their preferred solution.
- Their medical histories, however, became a significant obstacle, with carriers declining coverage for Long-Term Care, offering ratings or even declining the clients outright.
Solution
- Upon receiving the initial round of feedback from carriers offering a life insurance with LTC rider solution, we worked to find alternative solutions.
- Based on the fact pattern and medical histories, it was recommended that we submit the case informally for review.
- Based on an initial positive response from the carrier, the case was eventually submitted formally.
- Not only was the carrier able to approve the case, but it was also approved as applied for with robust benefits:
- $10,000 per month in benefits for each insured
- Lifetime Benefit Duration
- Of course, it also generated a nice paycheck for the advisor based on a 10-pay premium of $38,583.
