Most people do not realize that insurance companies and their programs are rated by a number of independent organizations, such as Moody's. As you consider long term health care, it will be important to insure that you are looking at providers with the best long term insurance rating.
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Ratings are not too difficult to understand and are based upon a variety of factors, including track record of servicing customer claims quickly and effectively, financial records of the company itself, and longevity and success of specific plan offerings. In short, how long has the company been around, is the company financially stable, and are its policyholders satisfied with the plans and service they receive. Each rating entity has its own code, usually with alphabet letters. To be certain that you are selecting a company with the best long term insurance rating, check out its rating with two or three of these evaluation entities. It is not disrespectful to ask an insurance agent to show you the company's ratings - it is just smart shopping! If the agent is honestly representing his company and programs, he will be more than happy to share its ratings with you.
Any insurance policy is only as good as the company which issues it. Long term care insurance is more complex than most other types of medical insurance, and it is therefore important that the provider is financially sound and able to meet its obligations to you should you need to file insurance claims. Remember, long term care costs can be huge, much greater than costs of short-term illnesses and/or injuries, so you need a company that has a strong, financially healthy track record. Our country's financial history is full of large companies who have not been fiscally responsible and who have lost savings of many individual investors. By paying your premiums to an insurance company, you are essentially investing in it, so be wise.
Most rating organizations have an "A" of some type for their top rating. "B" is still very good. However, when you get into the "C" or below range, it is best to avoid that insurance company. Life is risky enough without gambling your hard-earned insurance premium dollars on a company that may not be around when you need it. Compare ratings of all medical insurance companies who provide you with quotes. The cheapest is certainly not always the best in this arena.
To recap quickly: Look for long term care companies which have the best long term insurance company rating. If you do your homework, choose the options that are appropriate for you, and select the company with an "A" or "B" rating, you will ensure that you have the best long term care insurance.
