Long-term Care Insurance Denial

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Long-term care insurance pays the cost of nursing home care or home health services to policyholders who are no longer able to care for themselves. Sadly, many senior citizens are left financially destitute when their long-term care insurance claims are denied and they must pay the crushing cost of nursing home care out of their own pockets.

Years ago, insurance companies oversold long-term care insurance policies at a price that wouldn’t support the future payment of benefits. Now that policyholders are aging and need to claim their benefits, insurance companies are engaging in bad faith practices in order to minimize benefits payments.

Pricing Policyholders out of the Market

Unlike other types of insurance premiums, long-term care insurance premiums can increase. As policyholders grow older, premium costs are skyrocketing — as much as 500 percent per year.

Often, senior citizens on fixed incomes can no longer afford the premiums and must let their long-term care insurance policies lapse. Even though they regularly paid premiums for years, they will receive no benefits if and when they really need them.

Taking Advantage of the Elderly

Insurance companies attempt to reduce benefits payments to policyholders in other ways, too. Insurers make the process of obtaining benefits difficult. They inundate policyholders with confusing and burdensome paperwork. If a policyholder has trouble with a claim, they never get to discuss it with the same benefits administrator. Policyholders — often in their 80s or 90s — may forget to send in paperwork or just give up the fight.

If you or someone you care for has been the victimized by a long-term care insurance company, contact an insurance bad faith attorney at Shernoff Bidart Echeverria LLP today for help. Our compassionate and effective attorneys and staff members will take the time to listen to your problem and help you sort it out. There is no cost to you until we win your case.