I wrote a short blog article on April 6, 2007 (link to article) about how some long term care insurers are quick to take your premium payment and slow and dilatory in paying benefits. The New York Times published a great article on this problem which is becoming all too common.
I was recently contacted by a reader in California who relayed a very unfortunate story concerning her parents’ purchase of a long term care policy issued by Penn Treaty. The reader told me her parents purchased LTC insurance from Penn Treaty in 1997 with premium waiver benefit for the surviving spouse (i.e. if one spouse dies the surviving spouse does not pay any more premiums for the rest of his/her life). Her mother passed away on May 5, 2007 and Penn Treaty is trying to deny her father the surviving spouse benefit.
Has anyone experienced similar problems with Penn Treaty? If so, please let us hear about your situation.