Your Long-Term Care Insurance Company Can Fail

Long-term care insurance is a typically a smart purchase; odds are, you will live long enough to need at least some form of nursing care in your later years. But when you purchase long-term care insurance, you do so hoping that the policy will still be active years down the road. Do you know what to do if that company folds?

When an insurance company gets into trouble or is sold, it is usually absorbed by a larger company, one that continues to honor the old company’s policies. And in Michigan, we have an insurance guaranty association which is designed to protect you, the consumer.

The guaranty association is in place to ensure that claims are paid; it may also provide any insurance coverage directly to the consumer, or allow policyholders to cash in their policies, or may oversee the sale of the insurance policies from the failed company to a new insurance company.

But, Michigan’s state guaranty association can only provide coverage up to a certain amount. If you paid in more than Michigan’s cap, that money will be lost to you. Though long-term care insurance failure is rare, it does happen. More likely, you may miss premium payments and lose your policy.

What are your other options? Get in touch with the elder care firm of Christopher J. Berry. Let’s discuss how to ensure you have a safe future.

Christopher J. Berry is a Michigan Alzheimer’s Planning planning lawyer and Medicaid planning attorney dedicated to helping seniors, veterans and their families navigate the long-term care maze. To learn more visit or call 248.481.4000