The Percentage of Long-Term Care Insurance Applicants Denied Coverage

Shawn Plummer

CEO, The Annuity Expert

For the countless people who’ve spent their lives building a nest egg for their golden years, one question can often loom: Will my long-term care insurance application be approved? You’re not alone in this concern. It’s a topic that affects many of us, especially as we age and begin to think about potential care needs. This guide explores the statistics surrounding long-term care insurance application denials, helping to paint a clearer picture for you as you navigate this significant decision.

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The Reality of Long-Term Care Insurance Application Denials

Let’s start by delving into the core of our discussion: the rate of application denials in long-term care insurance. While the exact percentage fluctuates from year to year and provider to provider, studies suggest that approximately 20% to 25% of applicants are denied coverage. But what does this mean for you? First, the reasons behind these denials are essential to better prepare for your application journey.

Health Condition

Health condition is one of the significant reasons applicants are denied long-term care insurance. Insurers often evaluate the applicant’s health status, chronic conditions, and recent hospitalizations. For instance, a person diagnosed with Alzheimer’s may face difficulty obtaining coverage due to the high costs associated with their care.

The Percentage Of Long-Term Care Insurance Applicants Denied Coverage

Age Factor

Another reason for denial is age. Insurance companies set age limits for new policies, and applicants above a certain age—usually around 80—may face difficulty getting approval. This age barrier exists because the risk of needing long-term care significantly increases as we age.

Tips to Increase Your Chances of Approval

Now that you understand the primary factors leading to application denial let’s focus on enhancing your approval chances.

Apply Earlier

Applying for long-term care insurance when you are younger and healthier can increase your likelihood of approval and often result in lower premiums. For example, if you apply in your fifties rather than your seventies, you will likely get approved and pay less over time.

Manage Your Health

Managing chronic conditions and maintaining a healthy lifestyle can make you a more appealing candidate to insurers. For example, regular exercise, a balanced diet, and appropriate medication can demonstrate your commitment to your health.

The Role of Independent Insurance Agents

If you’re overwhelmed by the application process, remember that professionals are ready to assist you. In addition, independent insurance agents can be invaluable in navigating this landscape.

Tailored Guidance

These agents offer personalized advice based on your health status, age, and financial situation. In addition, they can provide examples of similar cases they’ve handled, offering insight into potential outcomes for your application.

Expansive Network

Independent agents work with various insurance providers, allowing them to compare different policies and guide you toward the one that best fits your needs.

The Percentage Of Long-Term Care Insurance Applicants Denied Coverage

Next Steps

While the statistic that 20% to 25% of long-term care insurance applications are denied might initially seem daunting, it’s crucial to remember that you’re not a statistic. Your circumstances, health condition, and age are significant in the approval process. With an understanding of the factors behind application denials and strategies to enhance your approval chances, you are better equipped to navigate the long-term care insurance landscape. Consider partnering with an independent insurance agent to get tailored guidance and bolster your confidence as you make this critical decision for your future.

The Percentage Of Long-Term Care Insurance Applicants Denied Coverage

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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