Consumers who replaced their existing long-term care policies with new policies at the suggestion or recommendation of their insurance company and/or agent.
Insurance companies could potentially be marketing new replacement policies which provide less coverage than the existing policies in an attempt to save itself from future exposure.
Long-term care policy providers
Long-term care is typically provided to individuals who cannot perform basic activities of daily living, such as eating, walking and bathing. Long-term care insurance policies cover care that is generally not found under health insurance, Medicare or Medicaid plans.
Long-Term Care Replacement Policy Problems?
Consumers who experienced problems after replacing their long-term care policies at the recommendation of their insurance company or agent may have valuable legal rights. Certain insurance companies are reportedly marketing new long-term care policies as replacements for existing coverage. These new policies, however, might provide less coverage to the policyholder in an attempt to save the company from future exposure.
Guidelines for Replacing a Long-Term Care Policy
The following are some tips for consumers looking to replace a long-term care policy:
Compare your current policy’s benefits to the new policy
Keep in mind that a new policy with better benefits may be more expensive than your current coverage
Don’t replace your current policy until the new one takes effect
Most importantly, when approached by the insurance company or an agent in regard to a new policy, consumers should ask how the new policy will be different from the existing one.