If you look at the long term care insurance industry's claims pay-outs, you'd be encouraged. Claim denials are extremely low compared to other types of insurance - and LTCi companies pay a LOT of claims" - $3.3 billion in 2006 alone. The largest claim as of Dec. 2006 was over $875,000!!! (Can you imagine paying that out of your pocket?) So, kudos for long term care insurance.
However, there are some LTCi companies that have given the entire industry a bad name, as well as giving consumers reason to pause. Companies that have sold inexpensive policies with lots of bells and whistles have felt the need to either sell off their long term care insurance business, ask for rate increases on existing policy holders or even deny or delay claims. "Low-balling" on what should have been "expensive" policies was definitely poor planning by those companies Some folks might even look at it as some type of fraud.
Some of the same companies had slack underwriting and would accept people who were higher risk, health-wise. This business strategy was a disaster waiting to happen.
Another issue has been one of rate increases. Some companies have increased rates on their policies, especially policies with unlimited lifetime benefits. Since a company has to put aside a million dollars for every unlimited lifetime policy, and since the price of long term care itself is inflating at over 6% per year, most companies who charged reasonable rates for these policies have had to ask for rate increases.
It seems that the LTCi players that are left on the field are being very careful these days. Long term care insurance now has enough "claimshistory" that actuaries can figure out what companies truly need to charge for each product. Most companies have tightened up their underwriting and some are not selling unlimited lifetime policies any longer. The ones that do charge hefty premiums.
All these factors are helping to strengthen and revivify the LTCi industry and to promote trust within consumers. Let's hope that this trust is warranted and that these improved policies will not suffer from rate increases in the future!
There's no doubt in my mind that any investigation into the LTCi industry will turn up some companies that had less than desirable claims pay-out and rate increase records in the past. Even so, I think that an investigation will find that the LTCi industry as a whole is one of the best in the insurance arena for paying claims. As far as raising premium rates goes, since LTCi companies cannot increase rates unless approved by a state's Dept of Insurance, perhaps states' DOI should not grant as many rate increases?
... Just a thought!
A long-term care insurance quote is based upon many factors. You will want know these factors and this article will give you six key points to explain some of those factors. When you receive an ltci quote, it is going to be contingent upon what you want out of the policy regarding benefits levels and where you are in your life age-wise. Using the information in this article will allow you to be a smart consumer.
Looking at long term care insurance quotes, what you want your policy to include and when you receive your policy will cause changes in the quotes you will receive. This article will give you more information about what companies you should look for among other factors.
When you are thinking about long-term care, you need to think about what types of benefits you will want. You can receive in-home service, nursing home care, or community based services to give you an idea.
One factor in the cost of your policy is your age. Getting your policy at a younger age allows the premium to be lower.
You will want to look at different types of companies. Your employer may be able to offer this type of insurance or you may want to look at individual companies.
You can choose different policies with different benefits. Some policies pay a maximum for either a daily, weekly, or monthly amount or others pay up to a certain dollar amount.
You have the option to choose when you are able to start using benefits and this will cause a change in your insurance quote.
Daily benefits level is something to think over. If you want higher daily benefits limits, this will cause you to pay more for your ltci.
A long term care insurance quote is something you will want to really understand because it will take more money to take care of yourself when you are older. Putting your thoughts and the information out there to be discussed and thought about will allow you to truly pick the best policy for you.
Both Clay Cotton & Terry Klass are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Clay Cotton has sinced written about articles on various topics from Insurance, Parental Care and Health. Long term care insurance activist, CB Cotton, and his wife, Kimberly, write for - The Onlin. Clay Cotton's top article generates over 6600 views. to your Favourites.
Terry Klass has sinced written about articles on various topics from Facts about Barack Obama. Before you go out and buy a policy go to to learn more about and read more. Terry Klass's top article generates over 590 views. to your Favourites.