II. The Insurer’s Staying Power
Consumers buy Long-Term Care Insurance (LTCI) when they are reasonably healthy with the expectation that the insurer will pay the contracted benefits when needed, but that need might not arise for a very long time.
That creates a risk, especially considering the financial markets’ recent volatility and its affect on financial services firms.
Prospective policyholders and their agents / advisors must know the insurer’s financial condition, says Gwenn Branstad, CLTC, an advisor with The Stonebridge Group, an affiliate of Thrivent Financial for Lutherans in Edina, Minn.
It also means being familiar with the insurer’s longevity in the LTC business and its claims payment history, she says.
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