Cheap Long Term Care Insurance Rates
I understand not wanting to pay a lot for insurance. And I can certainly empathize with not wanting to overpay for it. But consider this: Most of the top ten LTC insurers from 2000 no longer sell Long Term Care insurance in 2012. Many have stopped selling, or merged into other carriers. Why is this a relevant factor?
Think about it. The companies that are gone are the ones who could not make this a profitable product line. They sold the policies far too cheap in order to generate sales. What they have determined after watching premiums coming in and claims going out, is that they have mispriced it and that the contracts are a liability for the stability of the insurer. The insurers who have exited the marketplace have determined that they sold the policies too cheaply. What does this do to the insureds who have those contracts? It absolutely generates a feeling of uncertainty. Some carriers do fail. In many cases, insurance is the financial promise and obligation to step in and pay a claim 20, 30, or even 40 years in the future. Those who buy only based on price will likely have a day of reckoning.
Financial stability should be strongly considered when purchasing a policy. Other factors such as claims history and profitability of the insurer should be considered. It’s not always simple for a 75-year old individual with health issues to change policies 20 years after a policy purchase if they become concerned with the viability of their insurer. Take this decision seriously and involve a skilled professional. Seek out advice from a licensed professional.
Some products are commodities. If I pump gas for $3.50/gallon or can go across the street for $3.60, I’m not likely to notice a difference later, other than cost. A brick of cheddar cheese from one grocery store versus another is not like to matter much over my lifetime. But paying for a policy that I have an issue getting a claim paid for a long term care event at the end of my life will make a difference not only to my well being, but to my family involved in my care. See you local long term care insurance professional.