“The market for long-term care insurance, which covers the costs of some in-home health care, has had a rough month. One provider announced that it would not sell any more policies; another is headed toward insolvency, with billions of dollars in liabilities needing to be assumed by someone else. Yet in the face of this bad news, consumers are being sold newly created long-term care products that are less expensive than the older products that guaranteed monthly payments — and that brought two insurers to a reckoning. … Both announcements play into the consumer fear that an insurer won’t be able to pay claims decades down the road. Such concerns are generally unfounded, given how highly regulated the insurance industry is.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Given how widely read the NYT is, this piece is worth a look.
Combine Long-Term Care with Life Insurance? Do the Numbers First