Fraud is a real problem many people face today. However, many are surprised to discover that fraud can even take place in the long-term care insurance market. Long-term care insurance fraud can appear in several forms.

Common LTCI Frauds to Watch Out For

Unsuitable Policies: Faulty long-term care policies typically favor profit over a person’s unique health care needs. Potential traps could include super high premium costs and companies that try to sell overlapping LTC policies when only one is needed.

Scams for Upgrading: To make money on unsuspecting victims, long-term care insurance scammers will persuade a current long-term care customer to cancel their policy to buy a new, more expensive policy. The new policy doesn’t offer the policyholder any additional benefits and they’ll forfeit all premiums paid to the previous policy. In addition, a person’s health may have changed which can affect their ability to get coverage and could result in even higher premiums.

Fake Policies: Scammers will also try to sell phony policies designed to accept your payment but won’t pay out any benefits when the insurance is needed later. As a smart long-term care consumer, you should always check with your state’s insurance department to validate an insurer is licensed to sell in your state before signing the contract.



How to Protect Yourself Against LTCI Scams

Family caregivers and seniors can reduce the chances of getting involved in a long-term care insurance scam by getting together, thinking like a team, and being smart when making long-term care decisions. Consider having a facilitator in the room for family meetings to negate sibling politics and to keep the conversation focused.

Work with a trusted financial professional to help you make wise decisions about long-term care coverage. Avoid insurance scammers by only buying policies from well-known, reputable insurance providers. In addition, check the current financial health of the top providers for any indication of financial hardships or potential insolvency. An internet search can offer any recent financial news about an insurer and a good LTC Specialist can help you find a company’s current financial information as well.

“Our biggest concern is making sure our clients are protected when they need it most – at claim time.”

LTC Consumer – Helping Our Clients Avoid LTCI Scams

At LTC Consumer, we choose to work with only the top-rated LTCI carriers on the market. If an insurer doesn’t pass our strict guidelines for financial solvency, we refuse to sell their product to our clients. Our biggest concern is making sure our clients are protected when they need it most – at claim time.

When you choose LTC Consumer, we first evaluate your needs and your health. Then, we shop the market for you to find the best carrier and product to meet your needs. Each plan is customized to fit our client’s needs and budget.


Don’t let yourself or a loved one get caught in a long-term care scam. Contact us today to request a quote and schedule a free appointment to find out if long-term care insurance is right for you.