Long-term care (LTC) insurance is an essential tool for individuals planning for future healthcare needs, particularly as they age or anticipate long-term medical care. LTC insurance can cover expenses such as in-home care, assisted living, or nursing home care, which are often not covered by standard health insurance or Medicare.
However, not all insurance providers deliver the reliability and service that policyholders expect. Based on industry reports, consumer feedback, and regulatory reviews, several companies have received notable criticism for issues ranging from poor customer service and claim denials to financial instability.
1. Genworth Financial
Issues:
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Significant Premium Increases: One of the most cited complaints about Genworth Financial is its practice of raising premiums on existing policies, sometimes exceeding 100%. For long-term policyholders who have been paying into plans for years, these hikes can be financially crippling and may force some individuals to cancel coverage.
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Financial Instability: Genworth has faced financial challenges over the years, including downgrades in credit ratings and liquidity concerns. This raises serious questions about its ability to honor future claims, which is critical for policyholders who rely on these policies for security in later life.
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Customer Service Complaints: Many policyholders report difficulty reaching customer service, slow response times, and bureaucratic hurdles when filing claims. These service issues compound the stress of navigating LTC insurance, especially for those already dealing with health or family concerns.
2. Conseco (Now CNO Financial Group)
Issues:
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High Volume of Complaints: Conseco, now part of CNO Financial Group, has historically received a significant number of complaints regarding LTC insurance, primarily about claim denials and sudden premium increases. Many policyholders express frustration with inconsistent communication and difficulty understanding policy terms. (freeadvice.com)
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Legal Challenges: The company has faced lawsuits alleging improper claim denials and unethical practices, including failure to pay eligible benefits and mismanagement of funds. Legal scrutiny like this can indicate systemic issues in how LTC policies are administered. (Caruso Law Offices, P.C.)
3. Bankers Life & Casualty
Issues:
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Elevated Complaint Index: According to the Oregon Department of Financial Regulation, Bankers Life shows a higher-than-average complaint index compared to other insurers. This index reflects the number of complaints relative to the company’s market share and is a red flag for potential service and policy issues.
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Customer Service Concerns: Policyholders often report difficulties in communicating with representatives, delayed claims processing, and a lack of transparency about coverage. These issues can make accessing benefits during critical times frustrating and stressful. (freeadvice.com)
4. Penn Treaty American
Issues:
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Financial Insolvency: Penn Treaty American was declared insolvent, which resulted in the termination of its LTC policies and left many policyholders without coverage. This case highlights the importance of researching a company’s financial stability before purchasing long-term care insurance. (freeadvice.com)
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Lack of Support: Beyond the insolvency itself, affected policyholders struggled to find alternative coverage or receive guidance during the transition. The lack of support exacerbated the stress of losing coverage unexpectedly, demonstrating why ongoing customer service is just as important as financial strength.
5. Unum
Issues:
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Claim Denials: Unum has been criticized for denying claims that some policyholders consider valid. Complaints include disputes over eligibility, delays in payment, and overly strict interpretations of policy language, which can leave beneficiaries unprotected when they need care most. (coloradolaw.net)
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Legal Actions: Regulatory scrutiny and lawsuits have targeted Unum’s claims handling, alleging unfair practices and lack of transparency. Such legal challenges suggest that systemic improvements are necessary to restore consumer trust and ensure policyholders can rely on coverage.
6. Transamerica Life Insurance Company
Issues:
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High Complaint Index: According to the Oregon Department of Financial Regulation, Transamerica Life Insurance Company had a complaint index of 0.6 in 2022, indicating a higher volume of complaints relative to its market share Oregon Division of Financial Regulation.
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Premium Increases: Policyholders have reported substantial premium hikes, leading to financial strain and reduced coverage options.
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Claims Processing Delays: There have been numerous complaints about delays in claims processing, causing frustration among policyholders.
7. Medico Insurance Company
Issues:
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Customer Service Complaints: Medico Insurance Company has received multiple complaints regarding unresponsive customer service and difficulties in obtaining policy information.
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Claims Denials: Policyholders have reported issues with claim denials and challenges in appealing decisions.
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Lack of Transparency: There is a noted lack of transparency in policy terms and conditions, leading to confusion among policyholders.
8. SILAC Insurance Company
Issues:
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High Complaint Index: In 2022, SILAC Insurance Company had a complaint index of 5.51, indicating a higher volume of complaints relative to its market share Oregon Division of Financial Regulation.
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Premium Increases: Policyholders have reported significant premium increases, making coverage unaffordable for some.
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Claims Processing Issues: There have been numerous complaints about delays and complications in the claims process.
9. Riversource Life Insurance Company
Issues:
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High Complaint Index: Riversource Life Insurance Company had a complaint index of 6.86 in 2022, suggesting a higher volume of complaints relative to its market share.
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Claims Handling Concerns: Policyholders have expressed dissatisfaction with the company’s handling of claims, citing delays and inadequate communication.
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Premium Increases: There have been reports of substantial premium hikes, leading to financial strain for policyholders.
10. Ability Insurance Company
Issues:
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High Complaint Index: Ability Insurance Company had a complaint index of 18.39 in 2019, indicating a significantly higher volume of complaints relative to its market share.
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Claims Denials: There have been numerous reports of claim denials, leading to dissatisfaction among policyholders.
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Customer Service Issues: Policyholders have reported difficulties in reaching customer service and obtaining necessary information.
Conclusion
When considering long-term care insurance, it’s crucial to research and choose a provider with a strong reputation for customer service, fair claim handling, and financial stability. The companies listed above have faced significant issues that may affect their ability to provide reliable coverage.
Always consult with a trusted insurance advisor and review consumer feedback before making a decision. For comprehensive company insights and comparisons, WiseWorq can help you make smarter choices by providing clear, structured profiles of insurance providers and other businesses shaping the market.
