FAQ Category Archive: Consumer

I can purchase long term care insurance through my employer. The concern I have is the policy is with CNA and Suze Orman’s website had some negative comments on that firm. What are your current thoughts on CNA?

CNA has an entirely new claims management team plus they are moving the entire claims division inhouse so I’m sure it will be fine and claims will be handled well. My concern with the group product is for you to buy the inflation benefit that is automatic, not the kind that asks you every few …

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If I move to another state will my LTC policy premium be changed?

not at all. Your policy is governed by the state in which you bought it. This means the premium can only increase if your state approves a rate increase and that will happen regardless of where you live.

I took out an LTC policy in 2005. I continued paying yearly until 2012. I was told by a lady in the office they weren’t selling LTC anymore. I sent a certified letter and cancelled my LTC , mistakes were made by the agent she had to make several visits to me in the beginning. After learning of no longer selling it, I decided to cancel. Now can I get my premiums returned since I haven’t used it? If not, can I have that amount saved until I need it? Thanks.

Hello Mary – I’m so sorry you cancelled your policy as you could have kept it forever whether or not the company was selling long-term care insurance anymore.  No company can cancel your policy as long as you pay the premium in a timely manner as long-term care insurance is guaranteed renewable. To answer your …

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In one of your answers, you suggested looking into buying a small plan from an insurance company to supplement the insured’s CalPers plan and to decrease the benefits on the CalPers plan when there is another rate increase. That is exactly what I’d like to do. I have reduced my lifetime protection to 10 years and am looking at modest plans to supplement the CalPers plan. However, even though I have been paying CalPers LTC premiums from almost the first day of its inception, CalPers is telling me that my CalPers plan would always be secondary to the new plan. And, the LTC insurance broker is telling me that the plan that has been in effect the longest would be the primary. What can I do in this situation?

That is an excellent question. Even though that’s unusual, I don’t see any problem with it operating that way. It would be like having a primary and secondary health insurance that many couples have, or with Medicare, Medicare pays first and a Medicare Supplement pays 2nd.  You would file the claim with the new policy …

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What happens if a LTC insurer goes out of business? How common does this happen?

Each state has a guaranty fund. Here is the national website:  http://www.nolhga.com/  It describes the entire insolvency process. Basically, the guaranty association cooperates with the commissioner and the receiver in determining whether the company can be rehabilitated or if the failed company should be liquidated and its policies transferred to financially sound insurance companies. Once …

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After a claim is made for LTC in-home care for an alzheimer’s patient and the LTC insurance has accepted and is paying the claims, when do the premiums stop? M. Foreman

It depends on the policy, but usually when benefits start.  Some older policies delay the waiver of premium until 90 days after benefits begin. Also, some older policies only waive the premium when the claimant is in a nursing home. The time of the waiver will be stated clearly in the policy. If you no …

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As a retired Federal Employee (age 70), I am eligible for the FLTCIP as is my wife who is 61. It seems like a good plan, and I was about to sign up when I just learned that it does not have a partnership with Colorado, where we live. I am looking at a $150 DBA at 5% compound, 90 day wait for both of us and 2 years for me and 3 years for my wife. But the CO partnership also seems like a good idea. I have quotes for United and Mutual of Omaha which are for pooled home care with a cash benefit, at 5% for 20 years, and about the same premium amount as the Fed plan. I would like your advice on what is more important? A good Fed plan? State partnership? Is 20 years at 5% a good plan for my wife? How important is a cash benefit? Dave, Colorado

Hi Dave – I believe the Partnership is extremely important and would encourage you to go that route. The FLTCIP is a really good plan but doesn’t participate in the Partnership in any state, not just Colorado. I also believe a cash benefit is extremely important as who knows what care will look like in …

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I’m looking at a one time premium for ltci…any recommendations /

There are no single premium plans left in traditional long-term care insurance. You can do it with a combination long-term care insurance/life insurance product or a combo annuity/ltc product. Some people really like these as it gets rid of the “use it or lose it” of long-term care insurance. If you don’t need long-term care, …

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My husband is 68 yrs old and has alzheimers along with parkinsonism. We have no long term care insurance. Just medicare. He needs to be in an Alzheimers center for care but there is no way we can afford the $3000+ a month. what can we do?

You need to go see an elder law attorney if you have not already done so. You can go to www.elderlawanswers.com to search for one or one near you is Christina Applegate at www.applegate-elderlaw.com. To get Medicaid to pay for your husband’s care, the process in Indiana is that Medicaid adds all of your assets …

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Hi. I am a 62 year old woman with Parkinson’s disease. I took an early disability retirement in 2007. I signed up for Calpers long term care insurance in 1997 after I attended a presentation at work. They said that Calpers was self insured and at that time was not asking about pre-existing conditions or requiring any doctor letters or file copies. They said the premiums were low and were going to stay low. So I signed up. Since then I have always payed the max amount in order to keep the max coverage. Now my symptoms are worse and I need to move to assisted living to get the help I need. I recieve Social Security disability and retirement disability from the state. Once I start receiving benefits from the LTC policy will my retirement or social security be reduced?

Hi Lynnette. I am so glad you contacted me. First, I am so sorry you are having to deal with Parkinson’s disease. Second, you were so smart to take out the CalPers policy when you were only 47 and still working. It’s so important to get LTC insurance as young as possible. Now for the …

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