Limited and Extended Care Planning Collective

What Happens When a Client Can’t Qualify for Long-Term Care Insurance?

Many people put off long-term care planning until it’s too late. Some assume they’ll never need professional care, while others avoid thinking about it altogether. Unfortunately, by the time they do consider planning, they may no longer qualify for long-term care insurance (LTCI) due to age, health conditions, or financial constraints.

If your client has been denied LTCI or waited too long to apply, they may assume they’re out of options. The good news? It’s not too late for you to help them protect their assets—even if they’re already facing a long-term care stay.

Many seniors generously give gifts to loved ones or donate to charities without realizing how these transfers might impact their Medicaid eligibility. While giving away assets may seem like a way to reduce countable resources, Medicaid has strict rules that can result in penalties and delayed benefits. Understanding these rules is essential when guiding clients through the spend-down process.

As underwriting for long-term care insurance (LTCI) continues to evolve, agents play a crucial role in guiding clients through the application process and improving their chances of approval. By educating clients, pre-screening health risks, and positioning alternative solutions, agents can help applicants secure the best coverage possible.

Long-term care insurance (LTCI) provides crucial financial protection for extended care needs, but most policies have a benefit cap, whether it’s a maximum payout amount or benefit duration. When LTCI benefits run out, clients may face a difficult financial situation. As a financial advisor, you are uniquely positioned to help them plan for the next phase of care.

NAIFA’s Lifetime Healthcare Center is presenting “The Peak 65 Series: Impact Day for Lifetime Healthcare,” a one-day virtual event, November 19, beginning at 11 am eastern. It features a dozen 20-minute TED Talk-like presentations covering timely topics on the financial implications of longevity and aging. Presenters include recognized thought leaders offering insights on long-term care, disability income, hybrid insurance products, Medicare, federal and state legislative and regulatory considerations, and more.

As part of November's Long-Term Care Awareness Month, NAIFA is kicking off the Peak 65 Series and starting with a virtual Impact Day to explore topics within lifetime healthcare. Join industry thought leaders and subject matter experts for a free, virtual TED-talk-style event that showcases our expanded Center that now covers topics such as: 

• longevity
• caregiving
• Medicare
• vitality
• extended care 

The expanded Center is also now looking for brand ambassadors! Are you a financial service professional who practices in an area that touches topics in lifetime health? If so, please let us know so that we can talk about how to get you more involved and part of the brain trust!

While MarketWatch columnist Brett Arends raises legitimate concerns about the complexities surrounding Medicare enrollment and the insurance brokers who assist beneficiaries (“The Medicare scandal hiding in plain sight,” Oct. 16), he unfairly paints a broad picture of financial professionals as profit-driven actors without considering the critical role brokers play helping consumers navigate the Medicare Advantage marketplace, which now accounts for more than half of all eligible Medicare beneficiaries. Agents and brokers educate consumers on how Medicare works, both broadly and in conjunction with other products such as Part D prescription drug plans, to simplify a complex decision-making process.

Come join members John Migliaccio, Ph.D., RFG, FGSA and Kenn Tacchino, JD, LLM for the inaugural lecture of the Institute of Financial Gerontology at UMBC's Erickson School of Aging Studies. The event will be held on October 25th from 1-2:30 pm with an onsite reception to follow.

Following a period of substantial growth from the 1990s to 2010, Traditional LTC Insurance has encountered difficulties in expanding over the past decade. While sales remain steady, they are not significant enough to address America's Long-Term Care funding crisis. This has been highlighted by various negative press articles, including one from the New York Times' "Dying Broke" series in November 2023.