How does COVID-19 impact long term care insurance?
With the emergence of COVID-19, it's important to understand its impact on private long-term care insurance from an underwriting (eligibility), utilization and claims perspective.
Underwriting & Eligibility
Individuals who have tested positive for COVID-19, who have been hospitalized or quarantined for the virus, who have come into close contact with someone who has, or who have recently returned from a trip overseas, may find their applications for long-term care insurance postponed between 30 and 90 days (depending on the insurer and situation).
Other insurers are temporarily limiting certain age-and-benefit combinations to accomodate social distancing guidelines that interfere with the ability to complete underwriting where an "in-home interview" would be warranted. Due to the changing nature of these directives in light of the pandemic, and the number of carriers with whom we work, it is best to ask an LTC Insurance Specialist licensed in your state which policies and benefits are available at your age.
LTC insurance policies have long been thought of as nothing more than "nursing home" insurance, and while facility care remains the most expensive cost to insure against, if COVID-19 has taught us anything, it's the value of staying out of a nursing home if you can so choose. Policyholders who own "comprehensive" policies will find that their plans cover services from a multitude of providers, in a variety of care settings-- including their own homes.
There are no standardized exclusions or limitations specific to COVID-19 in LTC insurance policies. As always, please read your policy carefully.
LTCA and the insurance companies with whom we partner are committed to safety and business continuity, from the sales process through policy service and claims. We have implemented a "work-from-home" policy, as have all of our insurers.
From a practical standpoint, you will benefit from the safety and security of LTCA's 100% "remote" sales process that can encompass (depending on your situation) working by phone, screen sharing, electronic application, digital policy delivery, online premium payment, and encrypted email communications.