Message Font: Serif | Sans-Serif
No. of Recommendations: 0
LTC is in its infancy,TucsonJesse, compared to other types of insurance. If you purchase an individual policy through a company licensed in your state, you are protected by the state laws. Most states write their laws using the National Association of Insurance Commisioners (NAIC) model law as a guide. If the company bites the dust, then another company writing that type of business will pick up your policy. It is done usually on a rotational basis so you never know what company will pick it up, but the benefits in your contract are secure. Many states assess a premium tax that provides a fund for this purpose. Self funded programs do NOT come under the state laws and neither do group type plans purchased through some type of fraternal orginization. They generally issue a certificate of insurance and not a policy. The NAIC has a really good booklet available through your local Insurance Commisioners office on LTC. Be very careful of the salesmen; From what I've seen here in NV, many aren't telling their prospective clients if the plan is a tax qualified one or not. Some states have incentive programs for citizens to purchase LTC, so a call to your Insurance Commisioners office would be a good idea.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.