Fortunately, fewer and fewer seniors are lapsing their long-term care insurance. The percentage of seniors that lapse their long term care insurance each year has dropped by 68% since the year 2000. (Source: Society of Actuaries, July 2015)
Long term care insurance is the only type of insurance that has these protections in place. Sadly, many seniors unintentionally lose their life insurance every year because these consumer protections do not apply to life insurance–these protections only apply to long-term care insurance.
The most recent study by the Society of Actuaries uncovers some great information. We know that most people who purchase long-term care insurance keep it for life. But what about those who do lapse their policies? Are they just victims of forgetting to pay a bill on time?
Fortunately not. The majority of seniors who lapse their long term care insurance policies are NOT people who have paid premiums for decades and then simply forget to pay their premium. The study released by the Society of Actuaries in July, 2015 shows that most lapses by seniors occur within the first 5 years of buying the policy. In other words, they simply change their mind about their original purchase decision.
That is why Carolyn and I take the approach we do. We work with each client at their own pace. Our typical client purchases a long-term care policy about 90 to 180 days after first contacting us. We make sure you get the information you need to make the decision that is right for you. And we work with you, at your pace, as you progress through that buying decision.