Long-Term Care Insurance

Choosing a LTC Insurance Company
There are four major areas to look at when choosing a LTC Insurance Company:

1.

 

 Underwriting Philosophy of the Company
If a carrier is offering insurance to people that can't get coverage with other carriers, it is likely that they will have a lot of bad "risk" and pay out more in claims than other carriers. This could cause the insurance company to have to raise rates on the existing policyholders, or sell their long-term care block of business.
2. Pricing of LTC Insurance Products
Beware of carriers that price their LTC products "below market price". In other words, their price is far less than the average the other major carriers charge. If they do this then they will not have as much premium coming in to pay their claims and may need to raise rates on existing policy holders.
3. Experience in LTC Insurance Market
Experts recommend picking a company that has been in the long-term care insurance business for at least 10 years and has a claims paying track record.
4. Financial Strength of the Insurance Company
We recommend choosing a company that has the minimum financial rating from at least two of the independent rating agencies listed below.

A+
A.M. Best
 908-439-2200
AA
Fitch
 212-908-0800
Aa
Moody's
 212-553-0377
AA
Standard & Poors
 212-438-2000

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The Evolution of LTCI | Who Shoud Not Purchase LTC I | Types and Features of LTCI
What Does LTCI Cost? | Choosing a LTCI Company | LTC Purchasing Checklist