LTC UW vs Life UW...whats the difference?

Long-term care (LTC) expenses can quickly become overwhelming for clients, especially without proper planning. Traditionally, stand-alone LTC insurance was the go-to solution, but today’s market offers more flexible options. LTC riders attached to life insurance policies are increasingly popular, providing a practical way to address care needs while ensuring clients have life coverage.

However, underwriting for LTC riders differs greatly from traditional life insurance underwriting. As a financial professional, understanding these distinctions will help you better guide your clients toward appropriate coverage.

Key Differences in Underwriting: Mortality vs. Morbidity
Life Insurance Underwriting: Focuses on mortality—conditions that affect life expectancy.
LTC Underwriting: Evaluates morbidity—conditions impacting a person’s ability to perform daily living activities (e.g., bathing, dressing, or mobility).
It’s important to note that a client may qualify for favorable life insurance rates but could receive a different outcome for LTC coverage due to health factors. Here's a real-world example illustrating these differences:

Case Study: Navigating Different Risk Assessments
Client: 62-year-old female

Goal: $1 million Universal Life (UL) policy with an LTC rider

Profile:

Non-smoker, normal build
Health History:
Hypothyroidism (diagnosed in 1980, well-controlled with medication)
One chiropractor visit for back pain (improved with treatment)
Diagnosed with scoliosis
Underwriting Results:

Life Coverage: Super Preferred (due to strong overall health)
LTC Rider: Standard (due to scoliosis and history of back pain)
Alternative Solutions: Non-Traditional LTC Riders
When health conditions complicate eligibility for traditional LTC coverage, non-traditional LTC or chronic illness riders provide a viable alternative. These riders, often available with minimal or no additional underwriting, are included in eligible permanent life insurance products.

This flexibility makes non-traditional riders ideal for clients with impairments that may not qualify under stricter LTC underwriting guidelines.

How You Can Help Clients Navigate Options
As a financial professional, your ability to match clients with the right product is essential. If your client’s health profile presents challenges, don’t worry—there are always options to pivot toward. Collaborating with your underwriting specialist ensures you can pre-qualify clients and recommend tailored coverage solutions that meet both life insurance and long-term care needs.

Next Steps: Contact Your Underwriting Specialist
Our underwriting team is here to assist with pre-qualification, policy recommendations, and navigating the various LTC and chronic illness rider options. Whether your client is pursuing stand-alone LTC insurance or an integrated life policy with LTC coverage, we’ll help you find the right fit.

Plan and protect your clients’ future—because peace of mind is priceless.