What is Guaranteed Issue?

Guaranteed issue is a feature of some long-term care insurance policies. It means that the insurance company must offer you a policy without considering your health status or medical history. Essentially, you are guaranteed to be accepted for coverage, even if you have pre-existing health conditions.

Importance

Guaranteed issue is important because it ensures that everyone, regardless of their health, can obtain long-term care insurance. This is especially valuable for individuals who might have difficulty getting approved for insurance due to their health issues.

Example 1: John & Traditional Insurance

Example 2: John & Guaranteed Issue Insurance

Pros

1. Access for Everyone: People with pre-existing conditions can still get insurance coverage.
2. No Medical Exams: There's no need to undergo medical exams or health screenings.
3. Peace of Mind: Individuals know they have coverage regardless of their health status.

Cons

Higher Premiums

These policies often have higher premiums because the insurance company is taking on more risk by covering individuals with health issues.