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Medsister Asked March 2021

Is there anyway to convert long term insurance from one company to another?

My husband and I purchased long term care insurance over fifteen years ago from a company that was reputable. We were mislead concerning rate increases. Company representative told us that even though rate increases could happen, there had been none at that time. In the last several years the rate increases have been staggering each year. Now they offer options to reduce coverage or request for a full refund. This company is now rated C+ in our state and is trying to sell part of the company to a foreign nation. I have read no good consumer reviews about this company and in some cases no or reduced payment is made for services. I think this company is taking advantage of the seniors who purchased this product. Need some input and guidance from anyone with information on long term care insurance. Thanks!!!

AlvaDeer Apr 2021
Long Term Care insurance is a serious issue and I would get good solid professional advice from a Licensed Fiduciary before considering it. First of all policies do not pay enough to support a senior even WITH Social Security but they DO pay enough to prevent said senior from accessing medicaid. Moreover they vary widely, and as you have just witnessed they can be sold. Some go so far as to say there cannot be any monthly payout unless a licensed RN is present 24/7, and there is no LTC facility that has such a thing.
I think right now I would consult a Fiduciary or would consult an elder law attorney. Take the policy and all the information you can gather about this circumstance.
And for everyone out there, please, with both LTC insurance and with Reverse mortgages, BE CAREFUL and know EVERYTHING about the subject before "buying". Remorse can be ruinous with either/or. I am not saying that they are not good things for SOME. But often they are just more disaster in the aging scheme, emphasis on scheme.

igloo572 Apr 2021
Is it Genworth?

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sjplegacy Mar 2021
It's inevitable that LTC companies will increase their premiums. Many previous providers have left the LTC market because they underestimated their payouts. My wife and I purchased LTC coverage from John Hancock in 2006 and I have been very satisfied with them. I just rec'd a notice from JH about an optional increase in benefits and premium. The premium would increase 17% with an increase in daily benefit of only 4%. I receive these notices every 3 yrs, never annually, to compensate for inflation. This policy provides a pool of money to be used for home care, adult day care, asst living and MC. It was a godsend when my wife was in MC. The policy paid 2/3 the cost of her stay. Even though the benefit/premium ratio is out of kilter, I will still opt for it because it's still only $165/mo.

A full refund of premium could be a substantial amt of money. However, at your current age, changing to a new company could make the premium cost prohibitive, depending on your ability to pay and your current health.

The other thing is, make sure you need LTC insurance. If you have very few assets, it may be better to apply for Medicaid when the time comes rather than to shell out money for a premium that could be better used for other things. Use the link below to request quotes from the top companies.

https://www.ltctree.com/best-long-term-care-insurance-companies/?utm_source=bing&utm_medium=ppc&utm_campaign=dw
Grandma1954 Mar 2021
Wise advice.
(I also am very happy with John Handcock, although you are paying far less than I am!)
Grandma1954 Mar 2021
If you have a financial advisor this might be something that you would want to discuss with them
If there is another company that you have been researching you might want to discuss with them if they would accept the "full refund" and convert.

I think all companies that sell LTC insurance all raise their rates, we get older and it becomes more costly to insure. My LTC insurance is probably the largest single bill I pay on a yearly basis. I also think it has gotten to the point where a lot of companies have discontinued offering LTC insurance. Fewer companies offering it so they can charge what the market will bear.

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