What to Expect in Long-Term Care Insurance Underwriting
Underwriting is how the insurance company decides whether to approve your application and at what price. It typically involves detailed health questions and a review of your medical records, and sometimes a phone interview, cognitive screening, or medical exam. Your answers and records determine your eligibility and pricing class.
What does underwriting look at?
Underwriting practices vary. The NAIC’s consumer guide explains that some companies ask only a few health questions, while others review medical records and ask your doctor for a statement. (NAIC Shopper’s Guide)
Current and past health conditions
Medications
Recent hospital stays and surgeries
Whether you need help with any daily activities
Memory and cognitive health
Tobacco use, height, and weight
What are the steps?
You complete the application, often with your agent
You authorize the insurer to request medical records
Some applicants complete a phone interview, cognitive screening, or medical exam
The insurer makes a decision and sets your pricing class
If approved, your policy is delivered
What is a cognitive screening?
A short assessment of memory and thinking, often done by phone. Some applicants are asked to complete one, depending on age. There’s nothing to study for.
How can you prepare?
A list of your medications and doses
Names and contact information for your doctors
Dates of recent procedures or hospital stays
Answer every question completely and accurately. The NAIC notes that if information on your application is wrong, an insurer may rescind the policy, usually only within the first two years. (NAIC Shopper’s Guide)
What if you’re declined?
Staying Power is a licensed insurance agency that helps people prepare for the application process.
See What If I Don’t Qualify for Long-Term Care Insurance?. Or start with a few questions to see where you stand.
Related reading: When Should You Buy Long-Term Care Insurance? and Working With a Long-Term Care Insurance Agent.
Frequently asked questions
Will the insurer contact my doctor?
The insurer may request your medical records, with your authorization.
Do I need a medical exam?
Some applications require one. Your agent can tell you what to expect.
How long does underwriting take?
It varies by application. Your agent can give you a timeline once you apply.
