Long Term Care Policies – Stay on High Alert to Avoid Cancellation
Recently, there was a very relevant article in the New York Times telling the story of a Virginia gentleman with two aging parents, and their joint long term care policies. Busy lives, overwhelming needs and assumptions eventually led to the cancellation of the policies. Even after many years and $50,000 in payments, the long term care company refused to reinstate the policies after they became delinquent for eight months. The son took action by enlisting the Virginia Legislature, which created a bill to require third party and certified notifications of delinquent payments. Unfortunately, the bill ended in a tie in sub-committee, so for the time being nothing will change. However, according to the article, more efforts are planned to correct this, and the Virginia Board of Insurance is considering requiring certified mail notifications for Long Term Care policy cancellations.
For the full article, see The Policy Lapsed, but No One Knew.