Long-term care insurance for diabetics

Long-term care (LTC) is often the hardest coverage for a diabetic applicant to secure. Traditional LTC underwriting has gotten strict over the last decade. The good news is that LTC is not off the table. Hybrid life/LTC policies, asset-based LTC and short-term care plans fill the gap for many diabetic applicants that traditional LTC declines.

Traditional long-term care insurance

Standalone LTC policies pay a monthly benefit when you cannot perform two of six activities of daily living (ADLs) or have a cognitive impairment. Benefits usually last two to six years and can be used in your home, in assisted living or in a nursing home.

For diabetic applicants, traditional LTC carriers typically ask about A1C, insulin use, complications and age at diagnosis. Well-managed Type 2 applicants without insulin and without complications sometimes qualify. Type 1 and insulin-dependent cases are usually declined.

Hybrid life/LTC policies

A hybrid policy combines a life insurance death benefit with a long-term care benefit that can be drawn from while you are living. If you need care, the policy pays a monthly benefit for care; if you never use the LTC portion, your beneficiary receives the death benefit.

Hybrid policies accept a wider range of diabetic applicants than traditional LTC because they are underwritten more like life insurance. Many Type 2 applicants with A1C under 8 and no complications qualify. Some Type 1 applicants qualify at modified rates.

Asset-based LTC

Similar to hybrid, but structured around a single-premium or short-pay deposit. Often used by people who have a lump sum they would otherwise self-insure with. Underwriting is often lighter than traditional LTC.

Short-term care insurance

Policies that pay a benefit for up to 360 days of care, with simplified underwriting. Not a full LTC solution, but a usable bridge when traditional LTC declines. Approval odds for diabetic applicants are much higher.

What we do with your LTC file

We review your medical history first, before any carrier sees it. If traditional LTC is viable, we shop it. If not, we go straight to the hybrid and asset-based options so you do not sit through a decline you did not need to collect. Many of our diabetic clients end up with a hybrid policy that covers both a care need and a death benefit, which is often the best structure for a family.