Greetings,
This question is submitted for a friend of mine who is having this issue with his mother.
My friend's mother (Sally) has had a very good Long Term Care policy for 22 years. This is one of this very good policies with fantastic benefits that are not sold any more. All premiums for this entire 22 period have been paid quarterly on time... until now. Sally, due to absent mindedness (due to ageing likely), missed a payment. Sally then received notice that the policy had lapsed due to non-payment and the policy is no longer in force.
Quickly, Sally's kids were made aware and have stepped in and tried to fix this issue. After many phone calls, an official form was submitted requesting that the policy be reinstated and all back-premiums (only 2 quarters at this point) will be paid and auto-pay setup for future premiums.
I am not optimistic that the insurance company would easily reinstate this policy. Indeed it would not be in their best interest to do so! Also, it is unlikely Sally would qualify for a new policy.
My thoughts as to next steps would be to engage an elder care attorney to see what else can be done. What would bogleheads advise the next steps be?
Note: Sally's children will be watching her finances like a hawk from here forward as a result of this situation.
Thanks in advance!
This question is submitted for a friend of mine who is having this issue with his mother.
My friend's mother (Sally) has had a very good Long Term Care policy for 22 years. This is one of this very good policies with fantastic benefits that are not sold any more. All premiums for this entire 22 period have been paid quarterly on time... until now. Sally, due to absent mindedness (due to ageing likely), missed a payment. Sally then received notice that the policy had lapsed due to non-payment and the policy is no longer in force.
Quickly, Sally's kids were made aware and have stepped in and tried to fix this issue. After many phone calls, an official form was submitted requesting that the policy be reinstated and all back-premiums (only 2 quarters at this point) will be paid and auto-pay setup for future premiums.
I am not optimistic that the insurance company would easily reinstate this policy. Indeed it would not be in their best interest to do so! Also, it is unlikely Sally would qualify for a new policy.
My thoughts as to next steps would be to engage an elder care attorney to see what else can be done. What would bogleheads advise the next steps be?
Note: Sally's children will be watching her finances like a hawk from here forward as a result of this situation.
Thanks in advance!
Statistics: Posted by OhhhMIL — Mon Dec 18, 2023 9:58 am — Replies 0 — Views 19