Long Term Care Insurance Consumer Protection Explained

LOS ANGELES - June 12, 2013 - PRLog -- Los Angeles; May 22, 2013 - Consumers are not aware of the many protections provided to those who purchase long term care insurance.

"A recent article in The New York Times sparked an increase in the number of calls from consumers who purchased or may be interested in purchasing long term care insurance," explains Jesse Slome,  director of the American Association for Long-Term Care Insurance http://www.aaltci.org.   "There is concern, some of which is clearly unwarranted and in need of being addressed."

The national long term care insurance executive addressed one of the concerns that insurers would cancel a policy if the policyholder neglected to pay premiums that can happen as people age.

"Long term care insurance policies written prior to the Health Insurance Portability and Accountability Act of 1996 (HIPAA) typically provided for a 30-day grace period," Slome shared, "but the millions of policies written over the past 17 years have far greater protection."

Post-HIPAA policies include a reinstatement provision that allows the policy to be re-instated for five months, if the policy lapsed due to the insured not paying the premium due to a cognitive impairment or due to being ADL dependent.  "While five months is the minimum required by the law, some insurers will use a longer time period," Slome noted.  "The policy will be reinstated when all unpaid overdue premiums are paid."

Policies provide consumers today with added protection against an unintended lapse, Slome explains.  "The policyholder can and should name another person on the application who will be notified if payments are not made and this added layer of protection is extremely valuable."  The insurer is required to check periodically to make sure the contact and their address is still correct.

The organization director shared that while laws govern many provisions to protect consumers, the cost of long term care insurance coverage from leading insurers varied significantly.  "Each company today has a sweet spot in terms of premium costs and health requirements," Slome shared.  "Consumers are increasingly aware of this and are  looking for professionals who can compare and offer policies from multiple insurers."

For long term care insurance costs http://www.aaltci.org/long-term-care-insurance or to connect with a designated specialist, a member of the American Association for Long-Term Care Insurance, visit the organization's website or call 818-597-3227.