PROTECT YOURSELF FROM LONG-TERM CARE INSURANCE SCAMS DAVID S. CHANG
Shopping for long-term care insurance can include many challenges in an attempt to purchase the best policy. It can be exhausting sifting through complicated contacts, high charges and fees, and expensive premiums. Add the potential for insurance fraud to the mix, and it can be devastating.
KEEP AN EYE OUT FOR THESE RED FLAGS
FAKE P O L I C I E S Always check with your state’s insurance department to validate the insurer prior to completing the purchase of a longterm insurance policy. Ensure that they are a legitimate company that is licensed to sell insurance. Some insurance scammers with attempt to sell you fake policies that will accept your premium, but won’t pay out any money when the insurance is eventually needed.
UNSUITABLE POLICIES PAY ATTENTION TO INSURANCE COMPANIES WITH POLICIES THAT HAVE EXTREMELY HIGH PREMIUM COSTS AND THOSE THAT TRY TO SELL YOU TWO OVERLAPPING POLICIES WHEN YOU ONLY NEED ONE. A FORM OF LONG-TERM INSURANCE SCAMS ARE POLICIES THAT FAVOR MAKING THE MOST AMOUNT OF MONEY POSSIBLE, WITHOUT TAKING INTO CONSIDERATION ANY OF YOUR HEALTHCARE NEEDS.
UPGRADE SCAMS If an insurer tries to persuade you into upgrading your policy to a new, more expensive one, stay alert and review the new policy thoroughly. Insurance scammers will attempt to coerce you into cancelling your current policy and purchasing a new premium that is more expensive, but has no additional benefits compared to your current one.
FALSE REPRESENTATION Per Brian Mahany, “Long-term care insurance fraud can also include falsely representing benefits of a long-term care policy (i.e., saying they will cover all your long-term care needs) and high-pressure pitches to sell expensive policies (the insurer will warn you about being a burden on your kids).� Be on the lookout for insurers that try to pitch you on a policy using these tactics.
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