Wednesday, March 14, 2012

"While it is certainly disappointing to hear that any insurer has decided to leave the individual long term care insurance business, Prudential's announcement provides us a great opportunity to explain what a company departure means for policyholders," says Terry Truesdell, President and CEO of The National LTC Network.

"The overriding message that we want consumers to know is this: their policies have not changed just because the insurer is no longer selling new individual policies. Most people who have bought long-term care insurance have individual policies, which are a contract between the insured and the insurance company. Even if the insurer is no longer selling new policies, the policy remains unchanged. At claim time, the insurance company is still legally obligated to provide the policy benefits," explains Truesdell.

Prudential Insurance announced on March 7 that it is discontinuing sales of individual long term care insurance; however, the insurer announced it will stay in the group long term care insurance business.

"There are still plenty of strong, quality insurers in the long term care insurance marketplace," says Truesdell. "Our member firms and their producers remain in a great position to help people protect themselves and their loved ones against the very real risk of needing extended care."

The Network is an organization with 30 member firms, including some of the most-respected and successful distributors of long term care insurance in the country. Network members include trailblazers in workplace sales, association sales, and traditional individual sales.