LTC Explained – Video 9
At-a-Glance Summary
(“Regulations & Safeguards Behind Your LTC Policy” – Karp Loshak LTC Insurance Solutions)
Regulatory Backstop
Long-term-care contracts are governed by federal standards first laid down in 1996 and strengthened ever since. Those rules define exactly what triggers benefits and how claims must be handled.
State Guaranty Funds—Your FDIC Equivalent
Every state maintains an insurance-guaranty fund that steps in if a carrier were ever to fail. In New York, coverage is up to $500,000 per policy owner; limits vary slightly elsewhere but provide a similar safety net.
Only Investment-Grade Carriers
Karp Loshak LTC Insurance works exclusively with top-rated insurers whose financial strength mirrors the highest “investment-grade” tiers—another layer of protection on top of the guaranty fund.
Today’s Premiums Reflect Reality
Early “legacy” LTC policies saw sharp rate hikes because they were under-priced for high claims, low interest rates, and minimal lapses. Modern standalone and hybrid policies are priced for those real-world conditions, reducing the chance of future surprises.
Age & Gender Drive Cost
Rates now differ by age and by gender—women are 25–40% higher than men. Locking in coverage earlier still captures the most favorable pricing.
Key Takeaways
Robust federal rules, state guaranty funds, and disciplined carrier pricing mean today’s long-term-care policies are built to deliver exactly what you buy—reliable benefits when you need them most.
