Insurers No Longer Selling Long-Term-Care Policies

Some insurers will continue to service existing policies; others will sell off your policy to another insurer.

(Image credit: Murat Sen)

My long-term-care insurance company, John Hancock, is no longer selling new policies. What will happen to my coverage? --B.C., Arlington, Va.

John Hancock will continue to service existing policies and pay claims, even though it recently stopped selling new policies (except for the federal employees’ plan). Several other long-term-care insurers have also stopped selling new policies over the past few years because of larger-than-expected claims and the effect of low interest rates. As with John Hancock, some of them continue to service existing policies; others have sold their business to other insurers that service the policies.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.