Kansas City, MO (KCTV) – Frances Schmidt and Dorothy Schmidt are planners. The couple have been married for nearly 60 years and are carefully planning their future.
Years ago, we took out long-term care insurance in case one of us needed to move into a facility. Francis has paid the premiums faithfully for 26 years.
Sadly, that day has come, and Mr. and Mrs. Schmidt were disappointed with the company’s response. Francis said his policy was a worthless piece of paper.
“I waited, waited, waited,” said Schmidt. “I thought I would get my money back…”
What is long-term care insurance?
Researchers at the Urban Institute estimate that 70% of Americans reaching the age of 65 will need long-term care (LTC) services.
Private companies began offering LTC insurance in the 1970s. It is designed to pay for, or in some cases help pay for, services not covered by regular health insurance, such as home care or institutional care. Many policies have limits on payment terms and duration.
Regular health insurance does not usually cover long-term care. Most policies are only for short stays in limited home care or nursing homes.
Most Americans need some form of long-term care insurance, but few actually buy it. Costs vary depending on age, time of purchase, general health, gender, marital status and coverage you may need.
When he first bought the insurance, Frances said he paid just over $1,800 a year. This year, he said he paid about $2,600, and he learned that the price has gone up again this year.
long-term
Francis paid his premiums on time every year. Earlier this year, Frances and his wife moved into the facility. Dorothy has dementia and she moved out so he could care for her while she had help coming to their house.
Francis Schmidt told KCTV5 that his policy is easy to buy but cumbersome to use. He urges people to pay attention to his prints and read them.
He noticed that the refund was lower than expected and it was taking longer than expected to get the refund.
“It’s frustrating,” Francis said. “They showed me that I can’t trust them. If I had to start over, I wouldn’t have long-term care insurance,” he said.
Frances contacted state insurance departments in Missouri and Nebraska.
“I have a letter from Lincoln’s Department of Health,” said Francis. “And he says they’re going to check overnight. I’m still waiting. I’m waiting and waiting. They keep sending all sorts of stuff in the back. I hope There is only redemption.”
Francis wonders if long-term care insurance is worth the price and hassle.
KCTV5 has reached out to policyholder Allianz twice for comment and to ask how long it will take to process the refund.
I never got a response, but Francis gave me a full refund shortly after I asked.
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