Prudential is the second largest life insurance company in the US to stop selling long term care insurance policies. MetLife announced that it would stop selling the policies two years ago, and Unum Group has also announced that it will stop selling group long term care policies. What does this mean for long term disability insurance? That’s the $64 million dollar question.
The decision to halt sales of long term care policies means that insurance companies are not willing to take on risk that they do not see as profitable, and are ready, willing and able to drop any products that pose economic threats to their financial well-being. From their perspective, and the perspective of their shareholders, this makes perfect sense.
From our perspective, and for our clients, this raises concerns that long term disability insurance coverage might be considered in the same category. Long term disability policies were designed, marketed and sold with the statistical expectation that, in simple terms, many would be sold and few claims would be made, making them a highly profitable product. Too many claims, a low interest rate environment, and all the marketing and sales in the world could easily put long term disability policies in the same situation.
Our recommendation? If you don’t have a long term disability insurance policy and are considering a purchase, now might be the time to look into buying one. If you do have a long term disability insurance policy and think you may be filing a claim in the near future, make sure that your preparation for filing a claim is guided by an experienced professional.
Like long term care insurance, long term disability insurance is a safety net that millions of Americans rely on for a worst case scenario. If your claim is challenged or terminated, you can retain counsel to defend yourself, but if you don’t have a policy in place, you and your family must rely on a federal and state safety net that is precarious at best.
Questions on long term care and long term disability insurance policies? Call our office to learn how we can help 1-877-LTD-CLAIM (877-583-2524).