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A friend of mine had a father with dementia. And a long-term care policy. When the time came to take advantage of that policy, the insurance company refused. The friend had to keep his father at his house for 5+ years until his father died.

This brings up the 3rd leg of why LTCI is truly high risk.

Lets say you have reached a point where you cannot perform two ADLs. You or your spouse contacts the insurer, who sends out one of their own evaluators, who takes his measurements and then two weeks later, a letter arrives denying the claim. What are you going to do? Assuming you are not mentally compromised, you will most likely be physically frail. Will you be able to pick up the phone and begin the battle with the insurance company, by going through the company's appeals process, complaints to the state's insurance commissioner and ultimately, find your own attorney to press your case? Now, I'm not saying that this will necessarily happen, and perhaps the claims process will go smoothly. Uh huh.

But to me, this means all those who elect to carry LTCI, you need to make sure you have a trusted family member, usually the eldest child, who knows exactly the policy you have, what its provisions are and make sure the insurer notifies them with a CC of everything sent to you (most states have this as a requirement).

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