Kevin and Kimberly's Story: Applying for LTCi After Two Declines

The Challenge of Long-Term Care Insurance Approval

• 💡 This episode shares the real-life case study of Kevin and Kimberly, a healthy couple who faced multiple declines for long-term care insurance (LTCi).
• ⚠️ While certain diagnoses or conditions (e.g., current need for care, cognitive impairment, pending surgery) can make someone permanently uninsurable, this couple's health was initially perfect.

Initial Attempts and Declines

• 🎯 Kevin and Kimberly, both in their mid-50s, applied for a joint LTCi policy, motivated by their parents' positive experiences with such policies.
• 📝 In their first two attempts, Kimberly was approved, but Kevin was declined because a single past prescription was considered uninsurable by most carriers.
• 🧠 Despite Kevin's declines, they made the smart decision to proceed with Kimberly's policy, understanding that some coverage was better than none.

A Different Underwriting Approach

• 🔍 After two rejections, a third application was submitted to a company that utilized a completely different underwriting method than the previous insurers.
• 🩺 This unique process involved an in-home nurse visit, which included a cognitive test, blood and urine samples, physical measurements, and a detailed health history review.
• ✅ Through this alternative and more comprehensive assessment, Kevin was finally approved at preferred rates, highlighting the importance of diverse underwriting options.

Kevin's Approved Policy Details

• 💰 Kevin secured a policy with $360,000 in long-term care benefits and a monthly benefit starting at nearly $5,000.
• 📈 Both the monthly and total long-term care benefits are guaranteed to grow by 3% compounding annually, projected to exceed $550,000 in total benefits by his late 70s.
• 🛡️ The policy also includes a $115,000 income tax-free death benefit if long-term care is never needed, and his monthly premium of $466 is guaranteed never to increase.

The Value of Specialization

• 🔑 Kevin's successful approval underscores the critical importance of working with an insurance specialist who represents multiple companies to find a suitable policy, especially after previous declines.
• 🚀 The speaker advises individuals with sufficient income or assets to protect not to delay applying for long-term care insurance, as health status can change unexpectedly.