When You Are In Long Term Care, Hope This Never Happens To You!

Ca;pers Long Term Care AlternativeUnlike your neighbors, you were smart; you planned, did your research, knew the benefits of planning for your long-term care needs in California, purchased a plan, and began to enjoy the peace of mind knowing you are protected.

Then it happens…

You receive a letter one day stating your premiums are going up 85%. How could this be, you planned everything out, researched the options, and selected a plan that promised fixed premiums for life with no risk of rising costs.

If you have been following the CalPERS class action lawsuit in California, you would know, this is exactly what happened to approximately 150,000 long term care insurance policy buyers that bought certain policies from 1995 to 2004.

According to the class action information website,” This is a class action lawsuit that seeks relief for individuals who purchased certain Long Term Care (“LTC”) insurance policies through CalPERS and have been subjected to recent premium hikes of approximately 85%. The complaint alleges that CalPERS promised its policyholders that the premiums for its LTC policies were fixed for life and would never rise.

The complaint further alleges that at the time CalPERS made these promises, it had underpriced its policies and knew, or should have known, that premiums were certain to rise in the future. The complaint asserts causes of action for Breach of Contract, Breach of the Implied Covenant of Good Faith and Fair Dealing, Rescission, and Declaratory and Injunctive Relief.”

While this case is still ongoing at this time, it is estimated that settlement from this type of litigation could take 2.5 to 3 years! What if you were already accessing your benefits? What if you had not planned for any increased costs? Would you be fully protected under the suit when you’re in a nursing home?

The article says, “Your decisions going forward (whether to drop the policy, take reduced benefits, or pay higher premiums) are entirely up to you and are dependent on your individual circumstances.”

If you want to avoid the pain and confusion that happens when a program underprices their policies to make a quick influx of cash, you need to obtain competent and professional assistance. The California Long Term Care insurance agents study their carriers’ every day to know the best and most price stable policies available on the market.

Unlike car insurance where you can shop and take advantage of short-term pricing opportunities, long-term care insurance is a policy you typically buy one time and keep until you need to access the benefits. It is possible to save money, but make sure you work with a professional so your plan does not become a legal nightmare later in life.

Get Started Planning Today, Contact Your Professional CLTC Agent Now!

Source: http://www.calpersclassactionlawsuit.com/index.html