Termination Risk for your Long-Term Care Policy!
If you have long-term care insurance, it’s likely you pay your premium on an annual basis after your insurance company sends you a bill. The danger is that bills can get lost in the mail or misplaced in your home. If the required premium for your LTC insurance coverage is not paid by the indicated due date, written notice will be sent advising you that your coverage will lapse (terminate) if your premium is not received prior to the end of your grace period. Again, there is risk that this notice is lost or misplaced.
As a safety net, to prevent the termination of your LTC policy, it’s wise to designate an additional (trusted) individual to receive a copy of the written notice before your policy lapses. This will give that person the opportunity to reach out to you to make sure your bill gets paid. Naming an adult child or other trusted individual, e.g. your power of attorney, would be a good choice.
Each insurance company has slightly different paperwork, but all should have this option available. To find the appropriate form, call your insurance company, search their website, or give us a call and we can help.