If you cannot perform most activities necessary for daily living, whether due to a specific disability or a combination of conditions that sometimes develop with age, you may be entitled to long term care insurance benefits. Too often, those insurance claims are denied. Here’s how long term care insurance came about, and what you can do if you are refused the benefits you’ve been paying for.
Long term care insurance has been around for decades. People realized that not everyone would be able to meet their own personal daily needs as they got older or became disabled, and some bought plans to provide for themselves in the future. While this was a positive development, long term care insurance claims are denied every day, sometimes, unfairly. Here is the history of this important (but sometimes unreliable) form of insurance.
The Beginning of Long Term Care Insurance
Nursing homes started to spring up in the 1960s to provide long term care outside the family. But not everyone could afford it, and some people had to sell their homes or deplete their savings to pay for long term care. Not everyone had those options, and many wanted to avoid them, so a need arose for insurance plans to specifically address long term care needs. By the late 1970s, this kind of insurance was being offered across the country.
The Rise and Fall of Long Term Care Insurance
By the 1980s, long term care insurance had become popular. Companies were happy to market it, and consumers appreciated the need for it, especially because people were living longer than ever before. By the early 1990s, it was common for seniors to have long term care insurance. Often, they paid monthly premiums on their policies for years, while hoping to never really need it.
By the 2000s, it was becoming clear that insurance providers had not anticipated how many people would keep their policies and eventually claim long term care benefits. As more policyholders started requesting benefits to pay for long term care, some insurance providers could not afford to pay out. They had underestimated both the number of claimants and how much healthcare costs would increase over time. As costs continue to soar, the problem has not gone away, and it’s all too common for policyholders to have their long term care insurance claim denied.
What to Do If Your Insurance Claim is Denied
If you or your parents have a long term care insurance policy and you think a claim for benefits is being unfairly denied, it may be time to take legal action. The right attorney can review your policy and help you get the benefits that were paid for. After you’ve made the decision to talk to a South Dakota long term care insurance lawyer, please contact Turbak Law Office, P.C. at 605-886-8361 to find out how to proceed with your case.