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Fleming Financial Services Blog

At Fleming Financial Services, Inc., our role is to assist our clients in defining and realizing their financial objectives and goals. We work with our clients to implement personalized plans designed for their unique situations. Our areas of concentration are: Retirement planning, Estate and Wealth Transfer strategies, and Business Continuation planning. We emphasize the importance of conducting our business with integrity and professionalism. As a member of PartnersFinancial, an independent national financial services company, we are able to provide access to sophisticated resources for the benefit of our clients. Some of the professionals with our firm are currently registered to conduct business through NFP Securities, Inc. With those additional resources in place, we help facilitate the complex corporate and personal financial decisions our clients must make.

Today’s Long-term Care Coverage: Underwriting Restrictions - Part 5

Thomas Joseph Thomas Joseph , 9/22/2014
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ElderlySome Accelerated Death Benefit for Chronic Illness riders are automatically included with a policy and, therefore, there is no upfront cost for these riders and, in most cases, no additional underwriting done to include the rider on the life insurance policy. For LTC and Accelerated Death Benefit for Chronic Illness riders for which there is an upfront cost, insurers will generally require that additional underwriting be done to ensure the insured qualifies for the rider. When the insured applies for the base life insurance policy, they also apply for the rider. However, approval for the life insurance policy does not mean automatic approval for the rider. Most insurers have specific underwriting guidelines for prequalification of the rider. For example, an insurer may only allow the addition of the rider for an insured that has been rated “standard” or better for the base life insurance policy and not allow any insured that has been “table rated” (also referred to as “substandard”) to purchase the rider. Additionally, separate medical and financial underwriting (separate from what is required for the base life insurance policy) may be done to further evaluate qualification for the rider. International Benefits Some clients experience the need for the rider benefits while they are out of the country either because they decided to move outside of the U.S. after purchasing the coverage or are traveling when the need occurs. Several insurers that offer LTC or Accelerated Benefit for Chronic Illness riders will provide the rider benefits even if the insured is outside of the U.S. However, there are certain guidelines to keep in mind. Most carriers that provide international coverage require that the recertification takes place in the U.S. Some will allow the recertification to take place outside of the U.S. but require that it be done by a U.S. licensed health care practitioner. Additionally, some carriers require that any facility or home health care service agency or provider utilized for care outside of the U.S. be U.S. licensed.   Copyright © 2013 NFP. All rights reserved.