A pre-existing condition is a condition for which medical advice was given or treatment was recommended by, or received from, a physician within six months before the effective date of coverage. In Texas, companies may not deny a claim for losses incurred more than six months from the effective date of coverage. Some companies charge an extra premium for the option to accelerate, and some charge only if this option is exercised. This is especially true if the benefits will not be paid out for many years. A long-term care insurance rider or attachment added to an existing life insurance policy.
Viatical companies buy life insurance policies from terminally ill policyholders.
For example, in exchange for being named the beneficiary on the policy, the company assumes the premium payments and pays the insured a lump sum settlement. The proceeds of the sale may pay for the health care costs and living expenses of the policyholder. The American Association of Retired Persons is developing a long-term care insurance program. References Angel, Jacqueline L. and Frances Pelley. Options for Independent Living Committee.