Rhonda is a 53-year-old woman in excellent health. She is on no medications, careful about her diet and exercise program, and sees her physician annually for a thorough exam.
Rhonda takes care of her finances with the same level of responsibility; she’s invested in her 401K since she started working, has savings equivalent to six months of expenses, owns a home with a mortgage that she can comfortably cover.
Last month, as she was approaching her 53rd birthday she decided the time was right for her to apply for a long term care insurance policy. She was “the right age,” still in good health and knew the risks of long term care (LTC).
Imagine the surprise both Rhonda and her insurance agent felt upon learning that her application was approved but at a much lower rate category, causing the premium to rise higher than expected. The reason? Rhonda’s father had developed early onset coronary heart disease 35 years ago when he was 58.