What happens to my long-term care policy if my insurance company stops selling new policies?
I know that’s not what the newspapers say.
I know that’s not what the headlines on the “news websites” say.
But fear sells newspapers and fear increases hits on their websites.
Fear (and lies) zoom through cyberspace faster than the truth does.
The truth just isn’t sexy enough.
The fact is that whether or not your insurer continues to sell new long-term care insurance policies has ZERO impact on your long-term care policy.
“Will they cancel my policy if they stop selling new long-term care policies?”
“Won’t they reduce the benefits in my long-term care policy?”
No. By state law, the insurance company cannot reduce your benefits without your consent. You can choose to reduce your benefits at anytime, if you want to reduce your premium. The insurance company, however, cannot unilaterally decide to reduce your benefits.
“If they stop selling new long-term care policies, won’t they just raise my premiums?”