This might not be what the insurance industry had in mind when it proclaimed November to be National Long-Term Care Awareness Month: MetLife, one of the industry’s biggest players, decided to drop out of the market.
MetLife said earlier this month that it will stop writing new long-term care policies (LTC), although the company affirmed its commitment to stand by current policyholders. And another huge underwriter, John Hancock, recently suspended sales to employers who offer LTC insurance as an employee benefit, although it continues to sell policies to individuals.
Industry experts are quick to point out that the list of LTC underwriters changes from time to time, and the insurance carriers that do exit continue to service their existing customers. Plenty of household names remain in the LTC market, including John Hancock, Prudential, New York Life, Northwestern, Mass Mutual and State Farm.
But the MetLife and Hancock developments come against a backdrop of other signs of problems in the LTC market.
Read more at: http://blogs.reuters.com/deep-pocket/2010/11/19/is-the-long-term-care-insurance-market-sick/
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The rest of the blog at the link, it doesn’t look good for Long Term Care Insurance. I knew it had been hit the hardest out of all the policies but not to the extent the figures show in the article. I think it has a bit of an unknown quantity, people don’t really know what to make of it, they would rather have a policy they know and understand, like Life Insurance, Critical Illness etc.
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