What happens to my long-term care policy if my insurance company stops selling new policies?

“What will happen to my long-term care policy if my insurance company stops selling new policies?”

N-O-T-H-I-N-G.

I know that’s not what the newspapers say.
I know that’s not what the headlines on the “news websites” say.
But fear sells newspapers and fear increases hits on their websites.
Fear (and lies) zoom through cyberspace faster than the truth does.

The truth just isn’t sexy enough.

The fact is that whether or not your insurer continues to sell new long-term care insurance policies has ZERO impact on your long-term care policy.

“Will they cancel my policy if they stop selling new long-term care policies?”

No.  They canNOT cancel your policy.  The only way your policy can end is if you fail to pay the premium in a timely manner.

“Won’t they reduce the benefits in my long-term care policy?”

No.  By state law, the insurance company cannot reduce your benefits without your consent.  You can choose to reduce your benefits at anytime, if you want to reduce your premium.  The insurance company, however, cannot unilaterally decide to reduce your benefits.

“If they stop selling new long-term care policies, won’t they just raise my premiums?”

No.  Your premium is not dependent upon new policies being sold.  Your long-term care premium could go up regardless of whether your insurance company continues to sell new policies or discontinues selling new policies.  (There are two types of long-term care policies that can never have a premium increase.  If you have one of those two types then your premium can NEVER go up.)

Whether your premium goes up or not has nothing to do with whether or not your insurance company continues to sell new policies.