A Shrinking Long-Term Care Insurance Market May Put the Squeeze on Policyholders
Seniors and retirees who are looking into their insurance options for old age may have noticed a disturbing trend: Long Term Care insurance, designed to help the elderly afford costs like retirement homes, Continuing Care Retirement Communities, or CCRCs, and caretakers, has been skyrocketing in price. As the elderly population grows, Long Term Care Insurance providers have been raising their costs to account for the rising expenses they are accruing. The cost of providing care for the elderly can be enormous, up to and above $100,000 per year, and new studies suggest that nearly half of those entering old age will require some amount of Long Term Care in the next few decades. As a result of these rising costs, some Long Term Care insurance providers are trying to extricate themselves from the industry, potentially leaving some of their clients out to dry.
Long Term Care Insurance has a reputation for being fraught with problems, from denied claims to misleading information and sales tactics. For example, many Long Term Care policies are severely limited in duration, sometimes only providing for 6 months of care (hardly long-term), payout, sometimes barely covering the premiums paid for the policy, or scope, only covering a few specific types of long term care, leading to denials of coverage, or worse, cancellation after a senior has already paid out of pocket for their care. Our San Francisco Long Term Care Insurance Attorneys have dealt with numerous cases where policyholders had surprise jumps in their premiums.
As policyholders try to navigate their rising costs with the sometimes shoddy care they receive in exchange, companies are trying to find some way to squeeze a profit from the long-term care market. As that market shrinks, policyholders can expect that they will encounter even more denials, fees, and hidden costs when they try to make claims on their long-term care policies. Many insurers doubled their premiums a few years ago, and there is no reason they won’t do the same again.
Evans Law Firm handles cases involving long term care insurance, nursing home and continuing care facility abuse, financial elder abuse, and annuity and life insurance fraud. Our San Francisco Long Term Care Insurance Attorneys have experience dealing with complicated insurance policies and institutions, as well as guiding clients through litigation, both to trial and settlement. We believe in working closely with our clients to create equitable solutions that fit their financial needs. We can be reached at (415) 441-8669, or by email at firstname.lastname@example.org.