In order to serve their clients better, many Long-Term Care insurance (LTC) companies offered outstanding accommodations to their clients and families during the pandemic. Instead of worrying about losses and whether they would be setting a precedent, a number of insurers covered expenses not spelled out in the contract.
As an example, some LTC insurance companies paid for home care after their client was released from a facility, even though home care was not a covered benefit on certain policies. To avoid setting a precedent that could possibly come back to haunt them down the road, most insurers typically had the client sign a “Reservation of Rights” letter to avoid setting such a precedent.
Some LTC insurers paid for care performed by family members even though certain LTCI policies did not cover these expenses.
Other LTC insurers extended bed reservation periods even when bed reservation was not covered. (The bed reservation benefit on many policies pays to reserve your room at the LTC facility when you are not there, say when you have to go to the hospital or rehab for several days. The benefit continues to pay for your LTC facility room so that you don’t lose it while receiving other treatment elsewhere.)
A number of LTCI insurance companies continued to waive premiums even after their client stopped receiving care. (Most LTC policies require that premium payments resume after care has completed.)
The Long-Term Care Insurance industry has weathered the pandemic well. First and foremost, they kept their eye on taking care of their clients, and that is a story that deserves to be told.