Guaranteed Renewable Long Term Care Insurance policies cannot be cancelled down the road when your health changes.  While you as a consumer can cancel anytime, the insurer cannot arbitrarily cancel your policy if it is Guaranteed Renewable.

After all, Long Term Care Insurance is something you buy whenyoung and healthy with an expectation of use well into the future.  So a common concern among shoppers is with regards to how faithful an insurer will be to you as a policyholder when the chips are down.  Health insurance companies were famous for dropping policyholders after claims were made, and so are auto and home insurers.

Long Term Care Insurance is different.  Because of the long-term nature of the coverage, Tax Qualified plans are required to include a clause that makes the policies Guaranteed Renewable.  What this means is that:

Guaranteed Renewable Long Term Care Policies:

• An insurer cannot drop you for any reason, so long as you pay your premiums on time.
• Changes in health cannot affect you once you are insured.
• Preexisting conditions known at application time must be disclosed, but beyond a period of contestability, the insurer may not cancel the policy.

These rules are designed to protect consumers from unscrupulous insurer behavior.  Another reason to gravitate towards major national-brands when considering coverage is that these firms have reputations to uphold compared to smaller “under the radar” insurers that may have less brand equity and trust to defend.