Guaranteed Issue Long-Term Care Insurance
Guaranteed Issue Long-Term Care (LTC) Insurance helps you secure care benefits even if you’ve been declined before or live with health conditions that make traditional underwriting difficult. There’s no medical exam, minimal health questions, and approvals are fast—so you can protect your savings and independence without jumping through hoops.
At Diversified Insurance Brokers, we compare guaranteed-issue, simplified-issue, and hybrid solutions from top-rated carriers to build a care plan that fits your budget, health history, and goals.
How Guaranteed Issue LTC Works
- No medical exam: Eligibility is primarily age-based with brief yes/no questions.
- Comprehensive care coverage: Home health, assisted living, nursing facility, adult day care, and caregiver support (varies by carrier).
- Standard benefit trigger: Inability to perform 2 of 6 Activities of Daily Living (ADLs) or a qualifying cognitive impairment.
- Fast issue: Policies can often be placed in days, not months.
Many guaranteed-issue options are built on a life insurance or annuity chassis (often called “hybrid LTC”). These can provide a pool of LTC benefits and a death benefit or cash value, so your premium dollars don’t “disappear” if care is never needed.
Who Is Guaranteed Issue LTC Best For?
- People previously declined for traditional LTC insurance
- Clients with moderate health concerns (e.g., diabetes, cardiac history, mobility issues)
- Those who want simpler approval and predictable premiums
- Families seeking a smaller policy to supplement an existing plan
Not sure if guaranteed issue or hybrid is the better route? See our companion guide on Affordable Hybrid Long-Term Care Policies to compare structures, guarantees, and exit options.
Tax Benefits to Know
Long-term care planning can be surprisingly tax-friendly. While specifics vary by policy and individual circumstances, many clients benefit from:
- Tax-free LTC benefits: Qualified LTC benefits are generally paid income-tax free when used for covered care.
- Potential premium deductions: Premiums for tax-qualified LTC policies may be deductible (subject to age-based limits and other rules). HSAs can often pay LTC premiums up to IRS limits.
- 1035 exchanges: Certain life insurance or annuity values can be moved via a 1035 exchange into eligible LTC/hybrid policies, typically on a tax-advantaged basis.
- Annuity-LTC hybrids: Some annuity-based LTC solutions can provide tax-favored access to gains when used for qualified care.
Want a design that optimizes taxes and protection? Compare hybrids and single-premium solutions here: Single-Pay Long-Term Care Insurance.
Coverage & Cost Snapshot
- Benefit pools: Commonly $50,000–$250,000 (customizable by budget and need)
- Monthly benefit: Often $2,000–$8,000+ (depends on pool size and policy design)
- Inflation options: 3% or 5% compound inflation riders available on many plans
- Premium styles: Level pay, limited pay, or single-pay hybrids for contribution control
Prefer to keep control of assets but still want leverage for care? Compare “self-funding” versus real risk transfer in Self-Insured Long-Term Care.
Guaranteed Issue vs. Traditional LTC vs. Hybrid
| Feature | Guaranteed Issue LTC | Traditional LTC (Fully Underwritten) | Hybrid (Life/Annuity + LTC) |
|---|---|---|---|
| Underwriting | No exam, minimal questions | Medical review, labs possible | Generally simplified; varies |
| Benefits | Focused LTC benefits | Focused LTC benefits | LTC pool + death benefit/cash value |
| Tax Treatment | Tax-free LTC benefits (qualified) | Tax-free LTC benefits (qualified) | Tax-favored options; 1035 eligible |
| Premiums | Often higher for risk acceptance | Typically lower if very healthy | Flexible (single/limited pay) |
| If Care Isn’t Needed | Benefit may go unused | Benefit may go unused | Legacy value via death benefit |
How We Build an Affordable Plan
- Assess: Care preferences, budget, health history, and family support.
- Compare: Guaranteed-issue, simplified, and hybrid carriers side-by-side.
- Optimize taxes: Explore deductions, HSA coordination, and potential 1035 exchanges.
- Design for flexibility: Right-size the pool today with optional inflation for tomorrow.
Why Diversified Insurance Brokers
We’re a fiduciary, family-owned agency licensed nationwide. With access to 75+ top carriers, we tailor guaranteed-issue and hybrid LTC strategies that protect income, preserve assets, and reduce family burden—without complicated underwriting.
Get a Guaranteed-Issue LTC Quote
📞 Call 800-533-5969 or request custom options from leading carriers.
Related Topics to Explore
FAQs: Guaranteed Issue Long-Term Care Insurance
Can I get LTC coverage with no medical exam?
Yes. Guaranteed-issue and many hybrid LTC policies require no medical exam and only minimal health questions, focusing instead on age and basic eligibility.
Are long-term care benefits tax-free?
Qualified LTC benefits are generally received income-tax free when used for covered care. Policy structure and limits apply; ask us to design a tax-aware plan.
Can I deduct my LTC premiums?
Premiums for tax-qualified LTC policies may be deductible subject to age-based IRS limits and other rules. HSAs can often pay LTC premiums up to annual limits.
What if I never need care?
Hybrid policies can return value via a death benefit or cash value. We can show traditional vs. hybrid vs. guaranteed-issue options so your dollars work either way.
How much coverage should I buy?
We align benefit pools and monthly amounts with your budget, local care costs, and time horizon—often using inflation protection to keep benefits relevant.
Can I use a 1035 exchange to fund LTC?
In many cases, yes. Certain life insurance or annuity values can be moved tax-advantaged into eligible LTC/hybrid policies. We’ll confirm eligibility and structure.
