What Type of LTC Insurance Do You Need?Economic times bring out the best and worst in insurance products.
Hybrid or combination Life Insurance/ Long Term Care plans are associated with derivatives which mean you take the original product and then package it to make promises to people about a probability that may or may not occur.
Long Term Care Insurance is a benefit which helps people and when you combine it with another product which appears to benefit the consumer, it may benefit the insurance company more than the consumer.
In articles I read about the benefits and features of life insurance combined with long term care -- there is seldom an explanation of what the plans offer versus a standard long term care plan? Does it have shared care? What is the waiting period? Is it service or calendar day? Monthly or daily benefit? Is there a restoration period for owners of plans who are in the 50s or 60s? What do the plans pay if you live in another country?
Insurance companies have not gone out of business. Insurance companies such as Met Life in 2010 and other insurance companies previously have done is stopped offering LTC plans to consumers and businesses. The companies themselves have not gone out of business, what they have done is decided not to offer LTC plans.
Insurance companies and financial service companies do this all the time. They offer plans and then they decide to stop selling plans. Met Life or Allianz have not ceased doing business. They are strong viable companies who have decided that it is a product which they do not wish to offer. To those who own plans, they will honor and pay the benefits as promised.
Plans are expensive? As compared to what not owning a long term care plan? If it is not in your budget to own a plan, where will it be in your budget (cash flow from various assets) to pay for care giver services when needed?
Long Term Care plans do rise in premiums for these reasons:
1.People are not in good health when applying and maybe rated which raises the premiums.
2. We wait too long before plans are purchased. Waiting until you are in your late 60s or 70 is reasonable if you have sufficient funds to pay the premiums and your health is fine or you do not have any serious medical issues.
There are many competent and knowledgeable long term care insurance specialists in every area of the country to meet in person or by telephone/computer consultation. We know the companies, the plans, the underwriting, and the features. It may be complicated to the consumer but when explained it should be "comprehensible and understood" to the consumer or business who offers long-term care plans to business employees.
* * * * *