If you are a Conseco long term care insurance (LTCI) policy holder or are considering buying LTCI from Conseco…look out. Conseco on April 1st confirmed reports of losses for the fourth quarter and full fiscal year. Conseco’s CEO said this:
“While we are not without our challenges,” Chief Executive Jim Prieur said in a statement, “we are moving forward with our strategies to further stabilize our long-term care closed block of business and fully remediate the material weakness in internal controls.”
Don’t hold your breath if you are a long term care insurance policy holder because Conseco revealed that they are working to ditch more of its long-term care insurance business, which has been a huge losing segment of their business. Conseco said it lost $71.5 million, in the fourth quarter, compared to a profit of $5.7 million and for the full fiscal year, Conseco said it lost $194 million. They are blaming these unsettling losses to the sub-prime market but a Conseco executive said that sub-prime business is just 1/2 of 1% of their portfolio. The mortgage mess just sounds like a scape-goat to me.
I’ve been in the long term care insurance business for 11 years now and currently we service consumers in all 50 States, in all my time and with talking to people all across the country all I’ve heard in the past and hear in the present is negative info on Conseco’s long term care business. I hear this from other agents, former and current policyholders expressing their frustration with HUGE rate increase on their policies and tight claims approvals that often results in denied claims. When I read financials like the above mentioned, it brings to light why many people are fed up with Conseco’s long term care policies. They are obviously not doing something right and the people who put their trust into this company are feeling betrayed when they try and file a claim and get the run around or maybe bought a policy years ago from an agent who might of promised that rates would never go up. I hear stories like this all the time from people and I say and have always said don’t touch this company with a 10 foot pole.
At LTCtree we are a true brokerage company and can work for practically any long term care insurance company. Needless to say, Conseco is not a will never be a company we will back. We work with the top A+ companies and help our clients shop the market and find the best long term care insurance rates, and a financially strong company. If you are thinking about buying Conseco long term care insurance or have a Conseco policy currently take a few minutes to simply fill in this form to get your rates and we will be able to help you review your choices.
