Year 2010 brought a reform in health insurance sector after approval of Affordable Care Act by President Barack Obama. Under this Act, health insurance cannot be turned down by companies and health insurance quotes also became affordable. But in case of long-term care insurance, applications by the individuals can be refused by the companies.
Normally, the policy of the long term care varies with different factors like age of the applicant, amount paid by policy per day and number of days of year which policy will pay to name a few.
Benefits of long term insurance
Some of the benefits of long term insurance include adult day care, respite care, assisted living and nursing home facilities. Also, premiums related this insurance type may also be part of deductions associated with income tax.
Rejection of Long-Term Care Insurance
After receiving the application from an individual for long-term care insurance, companies follow an underwriting process before approving the insurance. It is during this process that most of the applications are turned down.
One reason for rejection is that you may already receiving long-term care insurance which makes you ineligible for the same.
Another major reason is that company may find you unfit health wise leading to negative response of the application. If you believe that there are no heavy risks associated with your application, you can use Medical Information Bureau file to confirm the accuracy of your health information.
It is imperative to utilize this method as wrong information may impact the process of underwriting which ultimately impacts your approval of long-term care insurance.
What exactly is Medical Information Bureau?
Similar to credit reporting agency, Medical Information Bureau (MIB) is an agency that collects and maintains database which is utilized by the insurance companies. These insurance firms are member of MIB and they submit information of clients after their insurance is approved.
This information is then used to evaluate your application by companies for the long term insurance. After the authorization of the applicant, the health related information from MIB is compared with the information provided by the applicant by the underwriter of the company. It is during this process that the insurance companies analyze the risks associated with issuing the coverage to the applicants.
All the information related to the applicant is present in the coded form in the MIB records. Information including inappropriate driving record or some risky hobbies is also present in the database. So, companies after going through all these records make that sure that selling policies like long term care to the applicant is not a wrong decision.
You can check your information from MIB
Under the Fair Credit Reporting Act (FCRA), if your record is present in the MIB’s database, you can access it without any charges once a year. In case long term care insurance has been declined by the insurer, you can again receive a copy from MIB free of cost.