Kathryn McKnight, a longtime nurse and wife of Ken Croken, passed away in 2021 after battling breast cancer for several years.
Following his wife’s death, Croken sought to claim approximately $2,000 from his long-term care insurance policy. What should have been a straightforward process turned into a frustrating ordeal as Croken faced prolonged correspondence and unresolved issues with the insurance company, all while grappling with grief.
Ultimately, Croken was unable to collect on the insurance policy.
Now serving as a state representative from Davenport, Croken intends to host a public forum in collaboration with the Iowa Insurance Division to gather stories about others’ experiences with long-term care insurance.
“I don’t regret not having made more claims on our long-term care insurance. I cherished the years we spent together,” Croken reflected. “But no other family should have to endure what we did, especially when long-term care insurance is a crucial part of their financial planning.”
In 2021, more than 75,000 individuals purchased individual long-term care insurance policies, according to Broker World Magazine.
Croken emphasized that unlike his experience with long-term care insurance, he encountered no issues in claiming life insurance benefits after his wife’s passing.
Consumers typically purchase long-term care insurance to cover services related to chronic conditions not typically covered by standard health insurance, such as care in nursing homes or assisted living facilities.
The premiums for long-term care insurance can fluctuate and may increase after the initial purchase.
Sonya Sellmeyer, a consumer advocate at the Iowa Insurance Division, noted that most complaints they receive regarding long-term care insurance concern the amount and frequency of premium increases.
Sellmeyer explained that depending on the policy, consumers might have options to mitigate the impact of rate increases, such as receiving a refund of premiums, converting to a paid-up policy, or reducing benefits.
Consumers can lodge complaints against insurance companies via the Iowa Insurance Division’s website. The division also offers assistance in addressing consumer inquiries or facilitating communication with insurance providers.
Sellmeyer and Croken will co-chair a public forum scheduled for September 21 at 9 a.m. at the Davenport Public Library’s Eastern Branch, 6000 Eastern Ave. The forum invites individuals to share their experiences with long-term care insurance through open-mic sessions.
Croken, a Democrat, expressed intentions to draft legislation on long-term care insurance but emphasized the importance of first understanding residents’ concerns from the upcoming forum.
Proposed legislative measures might include limiting rate increases or mandating refunds from insurance companies, Croken suggested.
“If people are abandoning their policies due to rate hikes, I believe responsible legislation should require insurers to refund the premiums plus interest,” Croken asserted. “That’s not abandoning the policy in its truest sense; it’s being driven away from it.”
Sellmeyer stressed the importance for consumers to thoroughly understand the policies they purchase to know their protections against rate increases and the process for filing claims.
“Before signing a contract, consumers need to fully comprehend what they are getting into,” Sellmeyer advised.
While Croken acknowledged his own financial stability, he acknowledged the impact on others relying on these insurance policies.
Encouraging those with experiences with long-term care insurance to participate in the forum, Croken reflected on his decision to purchase the insurance for financial security for his family, now questioning its effectiveness after his struggles to claim benefits following his wife’s death.
“I took these steps to protect my children from financial hardship,” Croken mused. “But now I’m left wondering if I truly did, or if I’ve inadvertently jeopardized their inheritance.”
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