Too many seniors fall victim to long-term care insurance fraud
As you or a loved one ages, your financial concerns undergo age-related changes. You might have worried about asset building in your younger years, but now you focus more on health care.
Many people invest in long-term care insurance (LTC) to feel more secure in their golden years. Unfortunately, there is a growing risk of fraud when purchasing this type of insurance. It’s important to stay abreast of insurance fraud and LTC scams to protect yourself or your aging family member.
Bogus LTC policies
Insurance scammers are adept at making phony insurance documents look authentic. They happily accept your policy payments, but when it comes time to access your benefits, you discover you have no coverage. If this goes on long enough, you could lose many thousands of dollars.
Insurance upgrade schemes
Golden-tongued scammers often talk seniors into canceling a beneficial LTC policy in favor of one with more protection, or so they will claim. The unfortunate truth is you will receive no extra benefits (and may lose some) and will forfeit the premiums already paid into the original policy.
Misrepresentation of policy benefits
Some LTC insurers try to skirt the good faith insurance rule by hinting or stating outright that the policy they’re selling guarantees full coverage. They may also apply pressure with phrases that make seniors feel bad. For example, they might suggest you will burden your family if you pass on their overpriced policy.
These frauds and scams bilk elderly people out of money critically necessary in their senior years. They can also wreak havoc on your Medicaid planning strategies, potentially leaving you with no way to pay for long-term care.
Always investigate LTC insurance policies before you sign on the dotted line. Learning more about elder law can give you and your family peace of mind.