The same rules can apply when searching for the best Long Term Care insurance company and product. Many insurance companies offer LTCI, but their financial strength, experience, product, and premium rates can be different.
Consider the following three factors when shopping for the best Long Term Care insurance company.
Strong Financial Strength
A company’s financial strength can be a good indicator if they’ll be around when you need to use your policy.
Long Term Care insurance is different than buying auto or homeowners insurance. You’re often required to buy these policies and hope you’ll never use them, but you’re glad they’re there when you need them.
With Long Term Care insurance, you must buy a policy while you’re young and healthy. However, you may not use it for 20, 30, or even 40 years. The financial strength of a company is important because you want to know they’ll be there when you’re eligible for benefits.
The top four reliable rankings to determine a carrier’s financial strength include:
- M. Best – A well-known insurance company ranking which measures the ability to pay claims. A to A++ ratings indicate excellent to superior ratings.
- Comdex – A composite of many ratings on a scale of 1 to 100 with 100 being the strongest. Comdex attempts to reduce confusion and different scales by giving companies a composite of all ratings.
- Moody’s Investors Service – Ratings from Aa3 to Aaa indicate high-quality with low credit risk.
- Standards & Poor’s – Classifies bonds according to risk. Rates the ability to pay claims for over 300 insurance organizations worldwide. S&P ratings A to AAA indicates a strong capacity to meet financial commitments.
Underwriting Experience
While your greatest concern may be getting approved for coverage, you don’t want to pick an insurance company who accepts anybody with a pulse and a checkbook.
A company with loose underwriting standards means they’re taking on greater risk which could affect their ability to pay claims in the future. Choose a company with conservative underwriting standards. This is a good indicator they’re in it for the long haul.
Claims Experience
While the Long Term Care insurance industry hasn’t been around forever, it has been around long enough to gain experience in products, pricing, and paying claims.
Does the carrier have a reputation for paying claims fairly? Are they known for good customer service? Do a little research and ask around to find out just how reliable and experienced a company is when it comes to paying claims.
Do you have questions on how to find the best Long Term Care insurance carrier or need more information? At LTC Consumer, we help individuals find the best LTCI coverage at a price they can afford. Get started today.
LTC Consumer is an independent, free online service to help consumers understand what long term care insurance is, how it works, and how to evaluate coverage options. Our mission is to provide an educational, no-pressure resource for learning about long term care planning, with the opportunity to speak with specialists who can help them.
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