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that might be true but it is why so many people get royally screwed by insurance companies. they play games and stall and delay. they make people jump through hoops just to get them to acknowledge their obligations and even then they hem and haw about how much. Too much BS for us.
The experience I went through with my parents made me pause about getting LTC insurance. My parents paid for years and years. During that time the insurance company they originally bought the policy from was sold several times. Therefore the policy my parents had was a "legacy" policy that the current company had to service. What that came down to was them not paying claims. Their strategy was to deny and delay, hoping you would give up or the persons insured would pass away. It was a huge struggle to get them to honor the policy. They finally did after my sister (who is a lawyer) threatened to sue and she reported them to the state insurance regulators.
When people gamble in Las Vegas, the joke is that they did not build the casinos from people winning. The same is true with insurance companies. They don't have huge corporate headquarters and executives making big bucks from paying claims.
Today when I look at LTC insurance I ask myself, "will this company stand by the product?" What if they won't pay? And that is a real possibility I found out. Let this serve as a cautionary tale to everyone. Right now, I don't have LTC insurance and I am reluctant to buy. My sister won't buy it either. Things to consider when you make the leap of faith with LTC insurance.
Our plans are written in plain English with no gotchas ..
Everything is clearly spelled out .
Many states forced these changes as plans were written like an annuity product with so many gotchas.
Older policies required a law degree to figure out
I know you are aware that you are VERY fortunate to have this product -- it sounds very good. We do not have LTC insurance and not planning on buying it because of the cost and the battle to get them to pay for claims. I have seen this in my own family -- plus there are limitations on what institutions you can use -- not always the one you would choose. We had to fight and fight to get the policy to pay for a relative but it is exhausting. Lastly I know people constantly criticize whole life insurance but we chose to buy a policy so IN CASE we exhaust all resources caring for one of us -- the other will have enough life insurance to at least get an apartment and survive decently with social security and life insurance proceeds. You just make the best plan you can and live with the results. We also have children who would not let us live on the streets although we have no intention of becoming their responsibility -- we have saved and have enough for retirement short of a MAJOR catastrophe -- meaning over 12 years in a nursing home.
We've been looking at assisted living and other LTC options in Mexico. Just beginning the research though. But they seem a lot more affordable than the states.
I have had LTCi for over 20 years. I have not heard of ONE person having an issue on a valid claim. In fact my LTCi has a third party concierge service to help with claims if needed. It seems a lot of people are looking for excuses to not pay for something that they think they will never collect on. That is not the purpose of insurance. If my choice was to never need LTC or to use it to the max I would choose to NEVER use it. I would be satisfied that I had the years of protection and some other poor sap needed my money. I gladly pay for that.
I have had LTCi for over 20 years. I have not heard of ONE person having an issue on a valid claim. In fact my LTCi has a third party concierge service to help with claims if needed. It seems a lot of people are looking for excuses to not pay for something that they think they will never collect on. That is not the purpose of insurance. If my choice was to never need LTC or to use it to the max I would choose to NEVER use it. I would be satisfied that I had the years of protection and some other poor sap needed my money. I gladly pay for that.
I agree , it is no different then all those who have issues with claims and Medicare ..most is the filers fault …wrong codes , or missing information.
Everyone has some story they get 3rd hand about someone with an issue but they never know the real reasons.
When people pole need a reason to not do something anything that supports their view m even without the details works for them.
We have gensworth.
Genworth collects about 2.5 Billion in LTCi premiums each year.
They are incurring about $1.5 Billion in LTCi claims each year.
And they have over $19 Billion in LTCi reserves (to pay future claims).
The "alternative" is self-pay. I don't foresee a problem with it.
Then you have probably never been through the process. You will be rung through the ringer documenting your "self pay" ability at a time that is probably not convenient. If you find the mortgage or refi process fun then you may get a hoot out of it. It is not a pretty process.
Also the "self pay" alternative can be millions of dollars. I am out about $40,000 in premiums today and have a multimillion dollar benefit. You "saved" $40,000 to spend possibly millions if you have it. THAT is what insurance is for.
Another thing to consider is that it is possible that it is not you making the spending decision. The decision maker is going to be burdened with making the money last. That is a bad position to be in. I know from experience.
Then you have probably never been through the process. You will be rung through the ringer documenting your "self pay" ability at a time that is probably not convenient. If you find the mortgage or refi process fun then you may get a hoot out of it. It is not a pretty process.
Also the "self pay" alternative can be millions of dollars.
So?
Quote:
I am out about $40,000 in premiums today and have a multimillion dollar benefit. You "saved" $40,000 to spend possibly millions if you have it. THAT is what insurance is for.
Another thing to consider is that it is possible that it is not you making the spending decision. The decision maker is going to be burdened with making the money last. That is a bad position to be in. I know from experience.
Uh-huh.
My mother-in-law spent five months in a board and care before she passed. Five months @ $5500 equals a hell of a lot less than what she paid for the insurance. Then the insurance company put my sister-in-law through hell.
But thanks for 'splaining insurance to me. I'm just a dumb bunny who married well.
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