Long
Term Care Insurance
When a
claim is made, particularly for a sizeable amount, it may be deemed
in the best interest of the Long Term Care Insurance company to use
paperwork and bureaucracy to attempt to avoid payment of the claim
or, at a minimum, greatly delay it. Some percentage of insureds will
simply give up, leading to lower costs for the Long Term Care Insurance
company.
Health Long Term Care Insurance is often only widely available at
a reasonable cost through an employer-sponsored group plan. This means
that unemployed individuals and self-employed individuals are at a
disadvantage.
Employers can write some or all of their employee health Long Term
Care Insurance premiums off of their taxable income whereas traditionally
individuals have had to pay taxes on income used to fund health Long
Term Care Insurance. This reduces the employee's bargaining power
in negotiating service with the Long Term Care Insurance provider
and also increases their dependence on the employer. In the U.S.,
COBRA and more recent legislation has been passed in an attempt to
address the latter concern, and full tax deductibility for health
Long Term Care Insurance premiums paid by the self-employed has recently
been passed by Congress as well.
