January 2021 - SRS Inc

Life Insurance With Type 1 Diabetes: What Underwriters Look For

September 25, 2026January 29, 2021 by Tim Fuller

Underwriter reviewing medical and financial data with a client during risk assessment

Type 1 diabetes is usually diagnosed early in life and treated with insulin from the start, which means longer exposure than most Type 2 cases. It’s typically table-rated, but clients with strong control and no complications have real options.

Key takeaways

Type 1 diabetes is almost always rated, but coverage is widely available.
Best-case clients over age 50 with excellent control and no complications may qualify around Table B to Table 2 at some carriers.
Consistent A1C history, no kidney, eye, nerve, or heart complications, and regular specialist follow-up drive the best outcomes.

Over 50, excellent control, no complications: Table B is possible for Type 1 diabetes at some carriers.

What underwriters weigh

Age at diagnosis and duration: earlier diagnosis means longer exposure.
Current age: older applicants who have done well for decades often receive better ratings than younger ones.
A1C history: multiple readings over time showing stable, good control.
Complications: kidney disease (protein in urine), retinopathy, neuropathy, and cardiovascular disease weigh heavily.
Management: regular endocrinologist visits; use of insulin pumps and continuous glucose monitors can show engagement.
Other factors: blood pressure, cholesterol, build, and tobacco.

Realistic outcomes

Clients over 50 with excellent control and no complications may qualify for ratings as favorable as Table B to Table 2 at some carriers. Younger applicants and those with complications should expect higher tables. See the overview in life insurance underwriting for diabetes.

Positioning the case

Submit a complete A1C history, recent labs including kidney function and urine protein, eye exam results, and specialist notes. Carriers differ widely on Type 1, so pre-screen with our Underwriting Team before applying. Some carriers also offer credits that can improve a rating; see Type 2 case with underwriting credits.

Frequently asked questions

Can a Type 1 diabetic get life insurance?

Yes. Most are table-rated, but coverage is widely available, and well-controlled clients without complications can get reasonable offers.

What is the best rating for Type 1 diabetes?

At some carriers, clients over 50 with excellent control and no complications may qualify around Table B to Table 2.

Do insulin pumps affect life insurance?

Not negatively. Pump and CGM use can demonstrate engaged management; underwriters focus on control and complications.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.

Connect on LinkedIn →

Asking the Tough Questions on a Long-Term Care Application

September 25, 2026January 28, 2021 by Tim Fuller

Adult daughter and her aging mother sharing a warm moment while discussing long-term care planning

Long-term care applications ask personal questions: every medication, every diagnosis, and exactly how much the client weighs. Asking them well is part of getting the best possible offer.

Key takeaways

Explain up front why you’re asking, so clients understand the questions protect their offer.
Complete, honest answers lead to better recommendations and fewer surprises.
Know which common medications signal conditions that are usually uninsurable for LTC.

“You don’t have to be in perfect health for long-term care insurance, but you do need to be in relatively good health. It’s my job to get that picture right.”

Set the stage

Tell clients why you’re asking before you start. For example: “You don’t have to be in perfect health to get long-term care insurance, but you do need to be in relatively good health. It’s my job to gather that information, so I need to ask about your health and any medications.”

Get an accurate health picture

Just as a doctor needs complete information to diagnose, you need it to recommend the right carrier and product. Encourage clients to be thorough. Missing details surface in medical records anyway and can derail the case.

Learn the story behind the medication

Medications often tell the story. Become familiar with drugs associated with conditions that are typically uninsurable for LTC. Examples include:

Prednisone: often prescribed for COPD or rheumatoid arthritis
Requip (ropinirole): used for Parkinson’s disease (and restless legs syndrome)
Aricept (donepezil): used for dementia
Avonex: used for multiple sclerosis

More medication clues in six things to uncover before you submit.

Don’t guess the weight

Ask for current height and weight and check the carrier’s build chart. Estimates cause surprises.

Add a cover letter

Share context the application doesn’t ask for, such as healthy habits, lifestyle, and how conditions are being managed. The more the underwriter knows, the better the chance of a good outcome. See what to include in an underwriting cover letter.

Frequently asked questions

What health questions are on a long-term care application?

Medications, diagnoses, treatments, doctor visits, height and weight, and questions about daily functioning and cognition.

Which medications can lead to an LTC decline?

Drugs associated with conditions like dementia, Parkinson’s disease, or multiple sclerosis often signal an uninsurable condition. Ask about the diagnosis behind every medication.

Should I include a cover letter with an LTC application?

Yes, when there’s helpful context about lifestyle or how conditions are managed that the application doesn’t capture.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Adding a Critical Illness Rider to Disability Income Coverage

September 26, 2026January 27, 2021 by Tim Fuller

Health insurance deductibles keep climbing, and many clients now carry high-deductible plans. A serious diagnosis can mean thousands in out-of-pocket costs before disability benefits even begin. Adding a critical illness rider to a disability income policy is an affordable way to close that gap.

Key takeaways

High-deductible health plans shift more medical costs to clients, even when paired with an HSA.
A critical illness rider pays a lump sum on diagnosis, without waiting for the DI elimination period.
One carrier offers the rider on both short-term and long-term DI plans, in some cases on an express-issue basis.

Disability benefits replace income after the elimination period. A critical illness rider puts cash in the client’s hands at diagnosis.

The out-of-pocket problem

To keep premiums manageable, employers and individuals have moved toward higher deductibles and copays. Deductibles of several thousand dollars per person are now common.

Health Savings Accounts (HSAs) pair a high-deductible health plan with a tax-advantaged account for medical expenses. They help, but many clients have not built up enough in their HSA to absorb a major diagnosis. A heart attack, stroke or cancer diagnosis can create a large bill at the same moment income is at risk.

How a critical illness rider on DI works

A critical illness rider pays a lump-sum benefit if the insured is diagnosed with a covered condition. Unlike the base disability benefit, the client does not need to satisfy the elimination period to collect.

One of our carrier partners offers a critical illness rider with benefits up to $50,000. It can be added to short-term DI products, in some cases on an express-issue basis, and to long-term DI plans. Confirm current availability, benefit limits and covered conditions for your client’s state.

Why it strengthens your DI case design

It addresses the first dollars of a serious illness, which DI does not cover.
It pays even if the client recovers quickly and never meets the DI elimination period.
It adds meaningful value for a relatively small increase in premium.
It gives you a concrete way to discuss high-deductible exposure with clients.

For more on building complete protection, see our post on the gap in group disability coverage.

Get a custom case design

Clients understand their deductible exposure, and most appreciate a practical solution. Contact our Disability Income team for a case design built around your client’s health plan, income and budget.

Frequently asked questions

What is a critical illness rider on a disability policy?

It is an optional benefit that pays a lump sum when the insured is diagnosed with a covered condition, separate from and in addition to monthly disability benefits.

Does the critical illness rider require satisfying the elimination period?

With the rider described here, no. The lump sum is paid on diagnosis of a covered condition, while the base DI benefit still follows the elimination period.

Is a critical illness rider worth it if a client has an HSA?

Often yes. Many HSAs do not hold enough to cover a large deductible plus lost income and other costs following a major diagnosis.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Trust-Owned Life Policies With LTC or Chronic Illness Riders: Tax Traps to Avoid

September 25, 2026January 26, 2021 by Tim Fuller

Clients often want the death benefit out of their taxable estate and access to long-term care benefits if they need them. Putting a policy with an LTC or chronic illness rider in an irrevocable trust can seem to do both, but the structure can create estate and income tax problems if it isn’t handled carefully.

Key takeaways

Indemnity-style riders are generally better suited to trust ownership than reimbursement-style riders.
Reimbursement riders that pay the insured’s care providers could be treated as an incident of ownership or retained interest, pulling the death benefit back into the estate.
Under IRC 101(g), tax-free treatment of chronic illness benefits may depend on the payee incurring the care costs, which is uncertain when a trust owns the policy.

When a trust owns a policy with an LTC rider, there’s no specific IRS guidance on the tax result. The client must get tax advice first.

The planning goal

An irrevocable life insurance trust (ILIT) keeps the death benefit out of the insured’s taxable estate. The insured also wants access to rider benefits if they need care. A common approach uses an indemnity-type rider: the insured pays care costs personally (reducing their estate), and if they need cash, the trust can lend to them.

Why reimbursement riders are a problem

With a reimbursement rider, benefits are paid for the insured’s care expenses, so the trustee is effectively bound to pay the insured’s creditors. That could be treated as an incident of ownership or a retained interest, either of which could pull the death benefit back into the taxable estate.

The income tax question

IRC section 101(g) treats accelerated benefits paid for a chronically ill insured as paid “by reason of death,” and therefore generally income-tax-free. But for chronically ill insureds, section 101(g)(3)(A) conditions that treatment on the payment being for costs incurred by the payee for qualified long-term care services. When the payee is a trust that didn’t incur the costs, tax-free treatment is uncertain. Carrier materials commonly note there’s no specific IRS guidance on third-party ownership and that adverse income, estate, or gift tax results are possible.

The advisor’s responsibility

When a client wants third-party ownership of a policy with an LTC or chronic illness rider, make sure they get advice from a qualified tax advisor before implementing. For background on rider types, see the nuances of LTC and chronic illness riders.

Frequently asked questions

Can an ILIT own a life policy with an LTC rider?

It can, but it raises estate and income tax questions. Indemnity-style riders are generally better suited, and tax advice is essential.

Why are reimbursement riders a problem in a trust?

Paying the insured’s care expenses could be treated as an incident of ownership or retained interest, bringing the death benefit back into the estate.

Are LTC rider benefits tax-free if a trust owns the policy?

It’s uncertain. IRC 101(g) ties tax-free treatment of chronic illness benefits to the payee incurring care costs, and the IRS hasn’t issued specific guidance.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

The Life Insurance Triple Play: Death Benefit, Cash Value and LTC

September 26, 2026January 25, 2021 by Tim Fuller

Most clients think of life insurance as protection if they die too soon. But living too long, or living with an impairment, can be just as costly. A properly structured permanent policy with a long-term care rider can address all three risks in one plan.

Key takeaways

The death benefit provides immediate, generally income-tax-free liquidity for income replacement, estate costs and debts.
Properly structured cash value can supplement retirement income through policy loans and withdrawals.
An LTC rider can accelerate the death benefit to pay for care at home, in assisted living or in a nursing home.

One policy, three risks covered: dying too soon, living too long and living with an impairment.

Play one: the death benefit

The first job of life insurance is still the most important. The death benefit is immediate liquidity that can replace income, pay estate settlement costs, retire debts and fund a legacy. For clients with larger estates, it can also provide estate tax liquidity.

Play two: cash value for retirement

A permanent policy designed for accumulation builds cash value on a tax-deferred basis. In retirement, clients may access it through withdrawals and policy loans to supplement other income. Because loans and withdrawals reduce the death benefit and can cause a lapse if mismanaged, the policy should be illustrated and reviewed carefully.

Play three: long-term care benefits

Close to 70% of people turning 65 will need some long-term care. CareScout’s 2025 national medians put in-home care at about $35 an hour, assisted living at $6,200 a month, and a private nursing home room at $10,798 a month.

An LTC rider allows the insured to accelerate the death benefit to pay for qualifying care. Any benefit not used for care remains for beneficiaries. For design details, see our post on LTC riders on life insurance.

Who is a good fit

Clients who want LTC protection but dislike the use-it-or-lose-it nature of traditional LTC insurance
Pre-retirees who want both a legacy and a source of supplemental income
Couples concerned about one spouse’s care draining assets meant for the survivor

Riders differ by carrier in benefit triggers, monthly limits and cost, so compare carefully. Contact us for a side-by-side design.

Frequently asked questions

What is the life insurance triple play?

It is a permanent life policy with an LTC rider that covers three risks: death, outliving savings, and needing long-term care.

How does an LTC rider on a life insurance policy work?

If the insured qualifies for care, the rider accelerates part of the death benefit, usually monthly, to pay for care. Anything unused passes to beneficiaries.

Can cash value really supplement retirement income?

Yes, through withdrawals and policy loans, when the policy is designed and funded for accumulation. Loans and withdrawals reduce the death benefit and must be managed to avoid a lapse.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Medicare, Medicaid, or Private Insurance: Who Really Pays for Long-Term Care?

September 25, 2026January 21, 2021 by Tim Fuller

Many people approaching retirement assume Medicare or Medicaid will cover their long-term care. Both programs have major limits, and clients who rely on them often discover that too late.

Key takeaways

Medicare covers limited skilled nursing care after a qualifying hospital stay, not ongoing custodial care.
Medicaid pays for long-term care, but generally only after assets are spent down, and choices of care setting can be limited.
Private long-term care coverage pays for care in a range of settings, including at home.

Medicare doesn’t pay for custodial care — the help with bathing, dressing, and daily living that people may need for years.

What Medicare covers

Medicare is designed for acute illness. It can pay for up to 100 days in a skilled nursing facility per benefit period, but only after a qualifying hospital stay of at least three days, only for skilled care, and with significant daily coinsurance after day 20. It doesn’t cover custodial care, which is what most long-term care needs involve.

What Medicaid covers

Medicaid, a joint federal and state program, pays a large share of the nation’s long-term care costs. But eligibility generally requires spending down assets to low limits, subject to look-back rules on transfers, and the care settings and providers available can be restricted. Program rules vary by state and can change.

Why private coverage matters

Private long-term care insurance, including hybrid products, pays for care in a variety of settings, including home, and preserves choice and assets. Clients who plan ahead keep control of how and where they receive care. See what modern LTC policies cover.

Position yourself as the educator

Explaining these differences is one of the most valuable services you can offer clients nearing retirement, and a natural way to start the LTC conversation.

Frequently asked questions

Does Medicare pay for long-term care?

Only limited skilled nursing facility care after a qualifying hospital stay. It doesn’t pay for ongoing custodial care.

Does Medicaid pay for long-term care?

Yes, but generally only after the person has spent down most of their assets, and care options may be limited.

What does private long-term care insurance cover that Medicare doesn’t?

Custodial care at home, in assisted living, in adult day care, and in nursing homes, depending on the policy.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Charity-Owned Life Insurance: How Carriers Underwrite It

September 26, 2026January 19, 2021 by Tim Fuller

Life insurance can be a powerful way for a donor to leave a larger gift to a favorite charity. But when the charity owns the policy, carriers take a hard look at how much coverage is justified. Here is why, and what that means for your planning.

Key takeaways

State laws give charities an insurable interest in donors, but carriers apply strict financial underwriting to charity-owned policies.
In our survey of major carriers, a common limit was about ten times the donor’s annual giving, with a few carriers allowing more.
Charity-owned coverage can still work well for committed donors, especially when paired with other gifting strategies.

A donor who gives $5,000 a year may qualify for only about $50,000 of charity-owned coverage under a common carrier guideline.

Why carriers are cautious

As states passed laws giving charities an insurable interest in donors’ lives, charity-owned coverage became easy to place. Then the life settlement market grew, and some investor groups arranged for charities to buy large policies on donors with the intent of selling them later on the secondary market.

Carriers responded in two ways. Applications now ask about the intended use of coverage and any planned transfer of policy interests. And financial underwriting for charity-owned coverage was tightened significantly.

How much coverage carriers typically allow

When we surveyed major carriers, the starting point, and often the maximum, was about ten times the donor’s established annual giving to that charity. A donor who gives $5,000 a year might qualify for around $50,000.

One carrier allowed up to twenty times annual giving.
Another based limits on the projected value of the donor’s giving pattern over a portion of life expectancy.
Carriers may look beyond these standards in some circumstances.

Guidelines change, so confirm current rules before quoting. For more on how carriers justify face amounts, see our post on financial underwriting.

Other ways to use life insurance for charitable giving

Naming the charity as beneficiary of a policy the donor owns, which avoids charity-owned underwriting limits but keeps the donor in control.
Gifting an existing policy the donor no longer needs.
Wealth replacement, where life insurance replaces assets given to charity during life for the benefit of heirs.

Setting realistic expectations

Charity-owned life insurance is not a shortcut to large premiums. It is a meaningful tool for committed donors who want to multiply their legacy. Contact us to review carrier guidelines and find the best fit for a donor’s situation.

Frequently asked questions

Can a charity own a life insurance policy on a donor?

Yes. Most states give charities an insurable interest in donors, but carriers apply their own financial underwriting limits.

How much life insurance can a charity own on a donor?

A common carrier guideline is about ten times the donor’s annual giving to that charity. Some carriers allow more, so check current guidelines.

What are alternatives to charity-owned life insurance?

The donor can own the policy and name the charity as beneficiary, gift an existing policy, or use life insurance to replace assets given to charity.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

What to Include in a Health History for Faster Underwriting Answers

September 25, 2026January 15, 2021 by Tim Fuller

“I’ve got a guy with a heart thing” isn’t much for an underwriter to work with. Every detail you provide turns a vague question into a firm answer, faster.

Key takeaways

Underwriters want the who, what, when, how, and why of each health issue.
Condition-specific details matter, such as cancer stage and grade or diabetes type and A1C.
Height, weight, tobacco use, and family history round out the picture.

Every detail you add turns “it depends” into a real answer, and shortens the turnaround.

The core questions for any condition

What is the condition or underlying cause?
When was it diagnosed?
Was it mild, moderate, or severe?
How is it treated?
Are symptoms well controlled? Any complications?
Fully recovered?
When was the last doctor visit, and what was the outcome?
What’s the current condition?

Condition-specific details

Cancer: type, location, stage and grade, PSA readings if applicable, any recurrence or spread.
Diabetes: Type 1 or 2, most recent A1C, treatment. See why A1C matters.
Heart conditions: procedures, test results, and current symptoms.

Also include

Height and weight
Any tobacco or nicotine use: cigarettes, cigars, chew, vaping
Family history of conditions such as heart disease, diabetes, or cancer

More on this in field underwriting and answering the underwriter’s questions first.

Frequently asked questions

What information do underwriters need about a medical condition?

Diagnosis, date, severity, treatment, control, complications, recovery, last doctor visit, and current status.

How can I get a faster informal underwriting answer?

Provide complete details up front, including condition-specific information like cancer staging or A1C.

Does height and weight matter for an informal inquiry?

Yes. Build affects nearly every rating, so always include it.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-25

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Long-Term Care Statistics Advisors Should Know (2026)

September 28, 2026January 14, 2021 by Tim Fuller

Long-term care is the unsolved problem in many middle- and upper-middle-income retirement plans. These are the numbers that matter most in client conversations, from reliable, current sources.

Key takeaways

Someone turning 65 today has almost a 70% chance of needing some type of long-term care, and 20% will need it for more than five years.
In 2025, national median costs were $35 an hour for in-home care, $6,200 a month for assisted living, and $10,798 a month for a private nursing home room.
Medicaid paid 61% of the $459 billion spent on long-term care in 2023, and 63 million Americans now provide unpaid family care.

Almost 70% of people turning 65 will need long-term care, and 1 in 5 will need it for more than five years.

How likely is it, and how long does it last?

Someone turning 65 today has almost a 70% chance of needing some type of long-term care services and supports.
Women need care longer on average (3.7 years) than men (2.2 years).
About one-third of today’s 65-year-olds may never need long-term care, but 20% will need it for more than five years.

Source: U.S. Administration for Community Living. Averages hide the real risk: the long, expensive claims. See why the average claim misleads clients.

What care costs (2025 national medians)

In-home care: $35 an hour (about $80,080 a year at 44 hours a week)
Assisted living: $6,200 a month ($74,400 a year)
Nursing home, private room: $10,798 a month (about $129,600 a year)
Private duty nursing: $90 an hour
Cost growth slowed in 2025, with most settings rising 1–5% year over year

Source: CareScout 2025 Cost of Care Survey. At 3% inflation, a three-year private nursing stay costing about $389,000 today would cost more than $800,000 in 25 years. More in our cost of care summary.

Who pays for long-term care

Medicaid paid 61% of the $459 billion spent on long-term care in the U.S. in 2023.
Long-term care accounts for roughly 36–37% of all Medicaid spending.
Medicare doesn’t pay for most extended custodial care; it covers limited skilled care after a qualifying hospital stay.

Source: KFF. Medicaid generally requires spending down assets first; see what Medicare and Medicaid actually cover.

The toll on family caregivers

63 million Americans, nearly 1 in 4 adults, provided ongoing care to an adult or a child with a complex medical condition or disability in the past year.
That’s an increase of 20 million caregivers from 2015 to 2025.

Source: AARP and National Alliance for Caregiving, Caregiving in the US 2025. See why family shouldn’t be the long-term care plan.

Planning options for the middle

High-net-worth clients may be able to self-fund, and many lower-income households rely on Medicaid. Clients in between face the hardest choices: traditional LTC insurance (with the possibility of rate increases), hybrid life or annuity products with guaranteed premiums, or self-funding. Compare approaches in traditional, hybrid, and rider options.

Frequently asked questions

What percentage of people need long-term care?

According to the U.S. Administration for Community Living, someone turning 65 today has almost a 70% chance of needing some type of long-term care.

How much does long-term care cost in 2025?

CareScout’s 2025 national medians: $35 an hour for in-home care, $6,200 a month for assisted living, and $10,798 a month for a private nursing home room.

Who pays for most long-term care in the U.S.?

Medicaid, which paid 61% of long-term care spending in 2023, according to KFF.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-28

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Incapacity Planning: Preparing Clients for More Than Death

September 26, 2026January 12, 2021 by Tim Fuller

Planning tends to focus on what happens at death: wills, trusts and life insurance. Yet many clients will face a period when they cannot manage their own affairs first. Incapacity planning makes sure the right people can act, with the right documents and the right funding.

Key takeaways

Incapacity can be physical, mental, or even practical, such as extended travel or distance.
A durable power of attorney, revocable trust and health care directives are the core documents.
Long-term care and disability insurance provide the funding that makes an incapacity plan work.

If a client does not make an incapacity plan, a court may make one for them through a costly guardianship process.

Incapacity takes many forms

Incapacity is not only mental decline. A client may be unable to manage affairs due to a temporary or permanent physical condition, or simply because they are traveling or live far from their assets. Good planning delegates authority for all of these situations, not just cognitive impairment.

Financial documents

Durable power of attorney. Can be broad or narrow, effective immediately or on a triggering event, and remains valid if the principal becomes incompetent.
Revocable living trust. Often used to avoid probate, it can also give a co-trustee or successor trustee authority over trust assets.
Be careful with joint ownership. Joint owners’ responsibilities are undefined, some transactions require all owners to agree, and adding a joint owner may create gift issues.

Health care documents

Names vary by state, including health care directives, living wills, health care proxies and medical powers of attorney. Properly drafted, they should:

Name who will make health care decisions for the principal.
Specify who will make life-sustaining or end-of-life decisions.
Grant HIPAA authorization so decision-makers can obtain medical information.

Choosing the right fiduciary

Documents are only as good as the people named in them. When choosing an agent or trustee, consider:

Location. Will they be available when needed?
Lifestyle. Do they have time to take on the responsibility?
Experience. Can they handle the affairs they will oversee?
Track record. Have they been trustworthy and dependable?

For more on this decision in a trust context, see our post on choosing a trustee.

Funding the plan with insurance

Incapacity is expensive. Close to 70% of people turning 65 will need some long-term care, and disability during working years can stop income entirely. Long-term care and disability insurance make sure the people named in the documents have the money to carry out the client’s wishes. See our post on long-term care costs.

Frequently asked questions

What documents are needed for incapacity planning?

Typically a durable power of attorney, a revocable living trust where appropriate, and health care directives including a HIPAA authorization. Clients should work with an attorney in their state.

Why is joint ownership a risky incapacity plan?

Joint owners’ duties are undefined, some transactions need all owners to agree, and adding an owner can trigger gift tax concerns.

How does insurance fit into incapacity planning?

Long-term care and disability insurance provide the funds to pay for care and replace income, so the client’s fiduciaries can carry out the plan.

50+ Years in Business60+ Top-Rated Carriers★★★★★ Rated by Advisors

Reviewed by Tim Fuller on 2026-09-26

Tim Fuller

President, SRS Inc.

Connect on LinkedIn →

Life Insurance With Type 1 Diabetes: What Underwriters Look For

What underwriters weigh

Realistic outcomes

Positioning the case

Frequently asked questions

Tim Fuller

We’re Here to Help

Set the stage

Get an accurate health picture

Learn the story behind the medication

Don’t guess the weight

Add a cover letter

Frequently asked questions

Tim Fuller

We’re Here to Help

Tim Fuller

We’re Here to Help

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller

Tim Fuller