False LTCi Coverage Harms the Public

Main Stream Media (MSM) almost always casts Long-Term Care Insurance (LTCi) in a negative light. I seldom read an MSM article about LTCi that dispels myths.

The recent Prudential survey I blogged about on March 28, 2011 found that most people lack much factual information about LTCi. My experience with clients strongly supports the survey findings.

Knowledge is power. Lack of knowledge leads to fear and LTCi bashing. What a disservice this is to the public.

Lately, for example, the media seem to enjoy harping on the withdrawal of Met Life and others from the LTCi marketplace. They fail to mention that companies like LifeSecure and Humana are entering the LTCi marketplace. We’re obviously in a harsh economy, and many companies across all industries are withdrawing from markets or closing down. But today’s economy has not caused a single LTCi carrier to go belly up and default on its obligation to policyholders. MSM doesn’t mention this. Rarely have I seen MSM articles describe how beautifully LTCi pays even though such stories are abundant. 

Another common thing MSM does to cast LTCi in a bad light is to refer to LTCi as expensive.  Simple math that anyone can do on a calculator shows that if or when long-term care is needed, policyholders typically re-coup every dollar paid in premium within a few months. LTCi premiums are far more stable than those of other insurance policies. Contemporary LTCi may have rate hikes but they are uncommon and limited by the regulatory authorities. So which is preferable? Paying affordable LTCi premiums regularly and being able to access the long-term care of your choice, or hemorrhaging savings to pay for care?

Why does MSM like to diss the LTCi industry so much? I believe it’s mostly due to lack of knowledge, which in turn leads to fear.

I encourage you to visit www.honeyleveen.com and go to the References page. You will find links to several reputable sites that provide accurate statistics and information about LTCi.