Long term care insurance can be a great planning tool to reduce the impact of care costs in your retirement years, and to receive care in your home rather than in a facility.

But not everyone qualifies. Long term care insurance requires underwriting – a process by which the insurance company looks at your medical history and records to decide if you are a good insurance risk. In many cases, the insurance company decides that the applicant’s health problems make the applicant too risky to insure.

What do you do if you are denied coverage? I have two recommendations.

First, look into a life insurance policy that offers a long term care rider. Underwriting for these so-called “hybrid” policies is typically easier than the process for a pure long term care insurance policy. You may obtain some coverage with such a policy.

Second, consider using an asset protection trust. For a fraction of the price you would pay for long term care insurance premiums, you may be able to protect assets in the event of a costly nursing home stay. At our regularly held workshops you can learn more about asset protection trusts and other smart estate planning techniques.

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