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Published: Jun 25th, 2015

Declined LTC Applicants Have More Available Options

Declined LTC Applicants Have More Available Options
Article Updated:September 12th, 2019

Long-Term Care Insurance has become, for many American families, an essential part of their overall retirement plan. Many people start planning in their 40s or 50s to take advantage of substantially lower premiums due to their age and better health. However, despite younger people getting coverage, many are still finding it difficult due to health issues.

 Every insurance company has its own underwriting criteria. A qualified Long-Term Care Insurance specialist will review your detailed health history in order to make appropriate recommendations. No matter your current age or health you might have affordable options to address the financial costs and burdens of aging. These include short-duration plans and hybrid options especially designed for those who might have some health challenges.

Why Do People Require Long-Term Care Servcies

People require long-term care services due to illness, accident, or the impact of aging. Longevity, itself, is a risk for needing long-term care services. Affordable Long-Term Care Insurance provides access to your choice of quality care, protecting savings and income, and easing the stress otherwise placed on your family. Since several types of plans are available, a specialist will guide you in finding the right plan which meets your needs.

Decline Rates for Long-Term Care Insurance

As many as 45 percent of individuals who apply for Long-Term Care insurance are declined coverage. As you get older the chance for a health issue which would disqualify you for coverage increases. If you have been declined for coverage in the past you still might have options available depending on the reasons for the decline. For these individuals and others seeking affordable protection, a little-know option exists.

"Short-term care insurance which is sometimes referred to as recovery care insurance can provide millions of older Americans with meaningful and affordable protection for their care needs."

Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI).

Insurance Options for Those with Health Issues Available 

The Association recently launched the National Advisory Center for Short Term Care Information.

The standard short term care insurance policy provides coverage for one year or less. As a result, policies are less costly than traditional long-term care insurance policies that can provide benefits for longer periods of time.

"These policies are ideal for individuals in their 60s and 70s who can not health-qualify for traditional LTC coverage or those seeking a more affordable option."

Jesse Slome

According to AALTCI's latest research, 21 percent of those who applied for Long-Term Care insurance between ages 50 and 59 were declined by insurers last year. "Almost half (45%) of those who applied between ages 70 and 79 were declined because they had health issues. For many of these individuals, a short-term care policy is a great alternative option."

While the typical buyer of short-term care insurance is between the ages of 65 and 75, some insurers will accept applicants who are age 80 and even older. Most policy applications ask between seven and 12 health-related questions. "If you can answer no to all the questions, you are 90% through the health underwriting process."

An Affordable Option To Traditional Long-Term Care Insurance

Like traditional long-term care insurance policies, short term care policies will pay for home care as well as care in a skilled care setting such as a nursing home.

"A typical benefit amount might be $100 or $150-a-day which will pay all or much of the cost for home care services."

Jesse Slome 

The policies also can pay in addition to Medicare, something a traditional LTC insurance policy is prohibited from doing.

"While some long-term care insurance claims last for many years, almost half of all claims last one year or less."

 "Having some protection is always better than having no protection at all making the short-term option very attractive to millions."

Jesse Slome 

Experts also share it is generally easier to get accepted for coverage with policies of this type. The National Advisory Center for Short Term Care Information posted examples of short term care application questions on its website. "If you can answer 'no' to the questions, you are 90 percent on your way to being accepted for coverage," Slome shares.

Plans are Custom Designed

Short term care insurance policies offer multiple options, often similar to traditional LTC insurance according to Slome. "The typical premium for someone age 65 is about $100-a-month," he adds. "For someone age 70, it's about $150-a-month."

Policies are not available in all states and some states like New York and Florida offer limited options. For information on short term care insurance costs call AALTCI's Advisory Center at (818) 597-3227 or visit the Association's website at