Last Thursday I read, “Getting The Runaround With Long Term Care Insurance.” It caused the hair on my neck to stand on end.
I was hoping that the days of reporters only telling half-truths and incomplete facts to promote the interests of consumers over the contractual obligations of big, bad insurance companies was over. Apparently, my hopes were not well founded.
The article in the L.A. Times is another example that when it comes to insurance, the words that are in the policy are meaningless. According to them, the insurance company is required to pay whatever bills the insured thinks is fair. The terms of the written policy are meaningless.
Over the last 4 years I have heard pious, self-righteous reporters and politicians use anecdotal evidence like this to promote their own personal agenda. The truth is that without reading the insurance policy, there is no way to know exactly what the terms of their contract with the insurance company was. LTCI policies that were sold 21 years ago are considered obsolete. They should be reviewed every 5-10 years and updated if necessary. It does not sound like that was done. We do not know what, if any, adjustments were made to her portfolio over the years. It is just as easy, but not politically correct, to lay the blame at the feet of her daughter. If she is the caregiver, it was her responibility, not the insurance company, to read her policy and make certain it was correct coverage. After a claim is not the time to find out there is a problem. I feel for this lady but the problems she is having may have been created because of her. It is not fair to blame the insurance company just because there is a problem.
- Bad Legal Advice For Long Term Care (theinsurancebarn.wordpress.com)
- Best Of The Insurance Barn: Long Term Care Insurance (theinsurancebarn.wordpress.com)
- Do You Need Long Term Care Insurance? (moneymanager.com)