As underwriting requirements toughen in the LTC insurance market, some clients may find themselves unable to get insurance. One way to help your client find alternative means of coverage is to understand what is involved in the underwriting for LTC policies.
Chris Tuttle, a CFP who specializes in LTC insurance, says he sits down with the client first and, in addition to the financial data, makes sure he understands the client’s complete medical picture. Tuttle is most interested in any predisposition to cognitive problems and to mobility problems. He reminds advisors to consider the six ADLs, or activities of daily living: bathing, continence, dressing, eating, toileting, and transferring (the ability to move from a bed to a chair). LTC policy benefit activation can begin at the loss of two or more of these functions of daily life. “What we’re trying to figure out,” he continues, “is whether people have either existing or predispositional problems. One of the first things I do is find out if people have any signs of osteoporosis or brittle bones, or cognitive disorders.”