"My wife recently died and prior to her death she received long term care benefits for about 3 months, although she paid premiums on this long term care insurance policy for more than 10 years. Is there any way that we can receive reimbursement on the amount that she overspent on this long term care insurance policy, vis-a'-vis the amount paid for the policy vs the amount that she was actually reimbursed for long term care services prior to her death? Please advise."

Answer:  The short answer is no. Generally, LTC insurance works like any other insurance, unless it has a return of premium benefit provision, there is no reimbursement provision. My experience tells me, however, that had she lived for about a year while receiving benefits, those benefits, if added together, would have exceeded her total premiums paid in.

Coincidently, my wife passed away this past February. She fought cancer for about four and a half years, but was able to perform her activities of daily living up until early December of last year about the time she was determined to be terminally ill. She had a 90-day elimination period in her policy (just as I do in mine), so she never was able to receive the first dollar of benefits. Insurance companies would have to charge significantly higher premiums if they were expected to reimburse policy holders for benefits not received. In fact, they wouldn't stay in business very long.

I guess you could say that LTC insurance is like other types of insurance. We pay premiums in case we need it, but hope we don't become ill, disabled, have our homes burn to the ground, or be involved in an auto accident, just so we can collect benefits.  I hope I live a long life and never need to collect benefits on my policies. 

William H. "Bill" Lee II, CLTC
Long Term Care Institute
Baton Rouge, Louisiana  70809
225-926-5414