Nice title for the article…was it intentional, do you suppose?
You know it’s funny. I see this HUGE push towards selling LTC products over the last 5 years from companies with incentives to agents like extra commision and some captive companies set requirements that an agent has to sell “X” amount of LTC insurance so that they keep thier contract with the captive company. AND BOOM … we see why that this was coming. FINANCIAL INSTABILITY IN A COLUMN somewhere on a chart. Pshhh … Insurance and Las Vegas should get together. It’s like husband and wife.
What’s not being discussed here is the federal and state governments that do nothing PUBLIC to encourage the purchase of LTCI, while people blindly rely on their attorneys to commit malpractice to throw them on Title 19. Most attorneys don’t want to know anything about LTCI because it delays their work straddling the client with Medicaid, spending down their assets and dumping them on a stinky Medicaid Warehouse for the person to live out the remainder of their lives in an unattended wheelchair. IN Ct we have the Partnership, which allows persons who purchase a Partner-ship qualified LTC policy the ability to exclude an amount equal to the benefit purchased from being spent down. In the meantime, the purchaser of the LTCI can live in a decent living arrangement without fear of losing there room if they end up admitted to a regualr hospital for an illness, and where they know they are not going to be parked in the hall and never moved. Finally, the perception is that ObamaCare will take care of these patients – just another excuse not to purchase, but I blame primarily the state and federal government for lack of awareness, but mostly the attorneys who do not want their clients to purchase LTCI because it cuts into their pay day.
People who could have but didn’t save to prepare for old age are generally not financially able to purchase an LTC as they procrastinated well past the age where they could have purchased it at an affordable price. People who save for old age, generally do not need LTC policies, but are usually among the few that actually purchased it when they were young enough to afford it. It is a good product but it is based on the faulty assumption that there are enough self reliant people who generally act responsibly that will purchase the product well before the time they might need it.
I felt that LTC would be unsustainable from day one and I’ve been an agent for over 30 years. I always felt that at some point the carriers would have to raise rates to the point that few consumers would purchase the policies. I havn’t sold one in over 15 years because I didn’t want to be linked to a failing product.
I’ve been an agent for 30 years and only sold LTC to customers that insisted that they wanted the policy. I always felt that at some point the carriers would have to increase premiums to a point the policyholders wouldn’t pay.
I have had LTC for myself and wife (From CNA – prior EE) for about 20 years. Assume even through they may get out of the market they will always have to honor those policies??
I CURRENTLY HAVE 2 LTC POLICIES WITH 2 MAJOR INSURERS,($10,000 ANNUAL PREM.) WHAT HAPPENS IF THEY STOP WRITING COVERAGE. WILL I STILL BE COVERED AS LONG AS I PAY MY PREMIUMS, OF COURSE.
I’m an LTC insurannce specialist in Andover, Massachusetts, and everyone who has the insurance can rest easy. If they have a plan, it is a contract with the carrier, and the company has to honor all the terms if you continue to pay your premiums. The carrier can’t change the benefits on you. Mark Baron
With an aging population the need for LTC insurance is increasing, and when there is a need it will be met by someone.
The federal government recently did an audit of the claims practices of 7 of the leading long-term care insurers.
You can read about it at:
Insurance is a product which is best suited for perils which are sudden and unexpected. It seems to me that all of us who survive until our late senior years will need long term care. This is neither sudden or unexpected. It is not surprizing to me that the LTC insurance product has hit bumps.
Isn’t life insurance the same way? And they make tons of money. Everyone is going to die. Not everyone will need long term care.
One way or another, we are going to need LTC, whether we like it or not. There are certain conditions that are too complicated to be treated at home and too expensive to be kept in a hospital. Besides, if you bought an insurance premium and paid it accordingly, I don’t think that there’s a need for insurance holders to panic.
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