Long Term-Care insurance problems
Long Term Care Insurance is a much needed product that has impacted the needs of countless lives. However, with all products of this nature there can be problems. One of those problems is that when you purchase a policy it is possible that the amount you pay for it, or the rate, can be raised during the life of the policy.
How can this be, and who determines that increase? Fortunately any increase in rate is not an easy matter for the carrier to accomplish. They first must petition the insurance commissioner of each state they have sold policies in and present compelling evidence that the increase is warranted and of a benefit to the policy holders. How could a rate increase be of benefit? The answer to that is if the company is paying out more in claims than it is taking in it could be in jeopardy of bankruptcy, and that would cause all policy holders to be without coverage.