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In an initial visit with a couple, I learned that one of the two had no health issues whatsoever. He qualified for a premium discount because of his excellent health. As it happens from time to time, the couple wanted to “sleep on it” before making a decision to move ahead. Unfortunately, that proved their undoing.

We were finally able to get back together and they had big news for me. The day after our initial visit the husband was given a diagnosis of early stage cancer. I have heard these stories from other agents, but this was a first for me. Rats.

When a major risk like the potential for huge long term care expenses is understood and accepted, the only rational solution is to find a solution. We can do that with long term care insurance. By submitting an application, we capture the health of an individual at the time of application because of a conditional coverage clause within the contract.  In essence, this states that no change in health condition after the date of the application will be considered in the underwriting process. Health status is “frozen” as of that date. If and when the policy is ultimately issued it will be affective on the date the application was signed.

This feature in the application process for long term care insurance is little appreciated, but it can, and in real life does, mean the ability to solve a major problem in retirement planning. The unintentional depletion of retirement funds for extended care and support is avoided. Once the risk is understood, why wait?