Banker’s Life Long-Term Care Insurance Review

Banker's Life has been a well-known brand name in Long-Term Care Insurance for some time. However, the company and its parent company - Conseco (CNO Financial Group), have had a troubled history.

Financial ratings are important, although they only apply to the financial stability of a company, not its product quality. Typically, consumers should look at companies with an A rating or better individual rating companies. Many experts look at a Comdex rating. A Comdex ranking is a composite score averaging the ratings of the major insurance rating organizations, including AM Best, Fitch, Moody's, and Standard and Poors. 100 is the top score, and Banker's is 62. AM Best is usually the individual rating company many experts look at, and it rates the company's financial strength as B++ (Good). Standard and Poors is the other rating company experts look at, and Banker's rating is "BBB+."

These organizations can change their rating frequently.

Troubled History

For most Long-Term Care Insurance specialists and consumers, the biggest concern is the troubled history of the parent company. Conseco (CNO Financial Group) owns Banker's Life. Conseco has had a troubled financial past, which leads many long-term care specialists not to recommend Banker's Life. Conseco has improved its profile recently, but many specialists express concern.

Claims

Another concern is Bankers Life has gained a reputation for being very difficult at the time of claim. If you or a loved one owns Banker's Life Long-Term Care Insurance policy, it is highly suggested to seek assistance when submitting a claim.

LTC NEWS offers free - no-obligation help with claims and case management - Filing a Long-Term Care Insurance Claim.

LTC NEWS Rating

LTC NEWS rates all the top Long-Term Care Insurance products. You can read the current ratings and recommendations here - Top Long-Term Care Insurance Options.

Variety of Product Options

Banker's Life has several product series depending on your state. The products have several features and benefits that consumers, and Long-Term Care Insurance specialists look for in a long-term care insurance policy.

There are variations between the policy language and benefits of the insurance companies that offer Long-Term Care Insurance; however, the primary features and benefit choices are comparable from company to company. Premiums and underwriting criteria vary dramatically between insurance companies.

Remember, insurance companies must file their products and pricing with each state's insurance department before being allowed to offer products in that state.

Features available with Banker's Life Long-Term Care Insurance:

• Partnership
• Daily Benefit only - $40 to $400 a day
• Several Inflation Options including 2%, 3%, 4%, and 5% compounded – plus others
• Shared Care Benefit
• Cash Benefit
• Elimination Period Options - 0, 15, 30, 60, 90, 180, and 365 days
• Non-Tax-Qualified Option
• Return of Premium
• Restoration of Benefits
• Dual Waiver of Premium

Banker's Life does offer Partnership Long-Term Care Insurance policies.

You can learn more about the federal/state partnership program available in most states here - What is a Long-Term Care Partnership Policy?

Find State-Specific Information

Every state has a state-specific page that includes the current and future cost of long-term health care services, available tax incentives, information on care providers, and other important information - LTC NEWS Cost of Care Calculator.

Federal Regulation and Consumer Protections

All Long-Term Care Insurance contracts are regulated under IRS regulations §7702B(b)(1). Any insurance contract that meets the guidelines set by the Internal Revenue Service is considered a qualified Long-Term Care policy. All insurance products that meet these federal guidelines contain consumer protections, regulated benefit triggers, and tax advantages.

Because of regulation, an insurance agent, agency, or financial advisor cannot give a consumer a special discount that is not available otherwise.

Banker's Life Long-Term Care Insurance products meet federal guidelines. Banker's Life does offer a short-term - limited-duration product that does not meet these guidelines under federal law. However, the product does have reduced underwriting criteria, which can help individuals with pre-existing health issues that may make them uninsurable with traditional LTC Insurance.

Underwriting

Long-Term Care Insurance is medically underwritten - What is Underwriting? How Does Current Health Impact Ability to Obtain Long-Term Care Insurance?

Every company has its own underwriting rules that determine insurability and rate class. An experienced Long-Term Care Insurance specialist will understand these underwriting rules when helping you select the best company and policy options. A specialist will match your health with each company's underwriting criteria and pricing to provide accurate quotes and professional recommendations.

A qualified specialist can compare each policy's features, benefits, and costs. Since your health is a primary consideration in determining your eligibility for coverage, it is always best to start planning before retirement when health is usually better.

Please note: Since every company has different underwriting rules, you could be eligible for coverage with one company and not another.

There are more similarities than differences when it comes to features and benefits. However, options and benefits vary from company to company, and premiums can vary between companies by over 100% when comparing equal benefits.

Because Long-Term Care Insurance is custom designed, you can design the plan to fit your specific needs, concerns, and budget. A specialist will help you develop your plan to address your concerns. Generally, you can design a plan to meet some or all of these common goals:

• Safeguard income and savings
• Protect the lifestyle of your spouse/partner
• Provide options for quality care
• Reduce the stress and burdens otherwise placed on family members
• Give your adult children time to be family
• Provide a legacy for loved ones

State variations may apply.