No. of Recommendations: 1
There is a fundamental problem with LTC Insurance almost no buyer appreciates. The companies who sell it are life insurance companies. Unlike other companies it is almost impossible for a Life Insurance Company to go bankrupt.

That means the rate setters (state insurance commissions) will let the rates go up instead of forcing the companies to live with the errors in setting premiums too low.

The rational for not forcing bankruptcy is not unreasonable -- if the XYZ company goes belly up not only future claimants but those actually getting monthly checks today are hung out to dry.

The only thing approaching a real solution would be preclude any Board Member, Officer or Actuary from a company increasing premiums on existing policy holders form ever holding such a position at any insurance company for life.

Such high paid folk's understand their financial situations a whole lot more clearly than mere customer's situations.
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