Is Your Long-Term Care Policy Safe?

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I believe that the Pennsylvania Insurance Commissioner concluded that it was in the best interest of the Conseco LTCi policyholders to set up this trust, with the goal of more effectively serving the current and future claimants.
The PA Dept of Ins. is facing a very difficult situation with a different insurer that might go into conservatorship next month. I think the PA DOI's conclusion regarding the Conseco policies, is that a well-managed trust now is better than trying to mop up a big mess through conservatorship later.
At least by putting the policies into a trust, the PA Ins. Commissioner can cut administrative costs and eliminate waste, including executive compensation. The roughly two hundred million dollars of annual premiums paid by the policyholders can go towards current and future claims.
Insurance companies don't have the authority to "transfer policies into a trust". It was the PA DOI that had the authority to do this. They did it for the benefit of all the policyholders because Conseco Senior Health was on the road to insolvency.
As with any insurance purchase, it's very important to check the financial ratings of the LTC insurers you are considering.
Scott A. Olson
www.LTCInsuranceShopper.com

Scott A Olson of CA 1:44PM December 06, 2008

Rates are a concern, as well as premiums that are being paid into LTC and never being used. There is what if" that the LTC insurance is never needed due to an unexpected death. I have been looking into the idea of how to to leave behind my premiums paid into the LTC insurance to my family. I think I have found a solution called, "Care Protector Plus", by Preservation Advantage. I'm having my financial planner look into it.

Joseph Gillen of OH 4:15PM December 05, 2008