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Current Policies CANNOT be cancelled by the insurer

Posted by Scott A. Olson, CLTC on June 13, 2001 at 18:26:25:

In Reply to: Carrier pulled the plug posted by Jim on June 13, 2001 at 16:04:47:

Jim,

First of all, this is a board which is visited primarily by consumers. Most consumers would read your statement of "carrier pulled the plug" as meaning that an insurer can cancel long term care insurance policies. Ofcourse, we know that current long term care insurance policies cannot be cancelled by the insurer. All policies that are sold today are "guaranteed renewable" meaning that the insurer cannot cancel the policy as long as the premium is paid on time.

In your case, the insurer stopped offering new policies in your state. Ofcourse, that insurer must continue to honor the policies that have already been purchased. So those consumers who have already purchased policies from that insurer will continue to be covered as long as they pay their premiums on time.

As an agent, this is why it is important for you to offer several leading LTC insurers... not just one. Secondly, it's important to represent the more reputable companies... those that have been doing long term care insurance for a long time and who have a proven track record.

Some companies that have been offering long term care insurance for quite awhile and have a proven track record are (alphabetically): Bankers United, CNA, Conseco Senior Health, GE Capital, John Hancock, John Hancock/Fortis, Metropolitan Life, Monumental Life, Mutual of Omaha, Prudential, Transamerica, and UNUM. You may also consider Allianz, New York Life, Equitable Life and Casualty, Bankers Life and Casualty, and IDS Life. There are several others who have been offering long term care insurance for many years, but their financial ratings are not exactly up to par.

I hope this helps.

Scott

Follow Ups:

Re: Current Policies CANNOT be cancelled by the insurer Steve Eads, CLU 17:04:41 06/14/01 (0)

Re: Current Policies CANNOT be cancelled by the insurer : Jim, : First of all, this is a board which is visited primarily by consumers. Most consumers would read your statement of "carrier pulled the plug" as meaning that an insurer can cancel long term care insurance policies. Ofcourse, we know that current long term care insurance policies cannot be cancelled by the insurer. All policies that are sold today are "guaranteed renewable" meaning that the insurer cannot cancel the policy as long as the premium is paid on time. : In your case, the insurer stopped offering new policies in your state. Ofcourse, that insurer must continue to honor the policies that have already been purchased. So those consumers who have already purchased policies from that insurer will continue to be covered as long as they pay their premiums on time. : As an agent, this is why it is important for you to offer several leading LTC insurers... not just one. Secondly, it's important to represent the more reputable companies... those that have been doing long term care insurance for a long time and who have a proven track record. : Some companies that have been offering long term care insurance for quite awhile and have a proven track record are (alphabetically): Bankers United, CNA, Conseco Senior Health, GE Capital, John Hancock, John Hancock/Fortis, Metropolitan Life, Monumental Life, Mutual of Omaha, Prudential, Transamerica, and UNUM. You may also consider Allianz, New York Life, Equitable Life and Casualty, Bankers Life and Casualty, and IDS Life. There are several others who have been offering long term care insurance for many years, but their financial ratings are not exactly up to par. : I hope this helps. : Scott

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