Unum Drops the Ball on Providing Long-Term Care Insurance — Again

Unum Drops the Ball on Providing Long-Term Care Insurance — Again

By Andrea Gressman

As they have done so many times before, Unum has left its policyholders hanging when they needed them the most. Moody Investors’ Service released a report last month indicating that five American insurers were leaving the industry of long-term health care or, at the very least, taking a huge step back when it came to involvements. Unum is one of these five insurers. The other companies are Guardian Life, MetLife, Prudential Financial, and John Hancock. They claim their finances are too shaky to provide the necessary insurance to adequately cover America’s most vulnerable and oldest citizens. This is devastating news when it comes to the hundreds of people relying on Unum to provide their financial needs.

Roughly 70% of Americans aged 65 or older will require long-term care. For over 40% of them, long-term care in a nursing home will be their only option. The money awarded for long-term care insurance, like what Unum is supposed to provide, helps to offset nursing home expenses, as well as care in the home and hospital stays that are longer than average. However, Unum is supposed to provide for other expenses as well.

Despite the Need, Change Comes in Unum

While these large insurance companies like Unum claim low funding for long-term care provisions, such premiums exponentially elevate in cost. The bill for one Illinois couple for long-term insurance skyrocketed to nearly double its original cost, to over $7,000 a year.

While some Americans may see lowering their Unum insurance coverage as a way to cut expenses, it may not be worth the risk, according to Forbes, for families that may potentially need long-term care, like what Unum is supposed to provide. Those families with a history of illnesses like stroke, Alzheimer’s disease or multiple sclerosis will most likely need long-term care.

Insurance may be unaffordable or difficult to find for some now that companies like Unum are changing their structure. By removing itself from the market, Unum and companies like it are not doing any favors for Americans seeking current investments to ensure their medical expenses will be covered further down the line.

Unum Has a Long Record of Failing Those in Need

Widespread controversy has followed Unum and many Unum lawsuits and class action lawsuit have been targeting this company as well. The company seems to specialize in deplorable business practices that involve bribes or incentives for employees who renege on legitimate insurance claims for coverage by policyholders. A multi-state investigation in 2004 confirmed this practice that had evidently been going on for years. The wrongdoing by Unum has financially ruined many policyholders after they had to come up with money for costs the insurer had a duty to cover. An agreement was reached that involved the company shelling out fines of millions of dollars as well as promising to reconsider a vast number of Unum claim denials numbering around 200,000.

Despite being a successful company, having made $10.3 billion last year, the question is posed to Unum: Why can’t they support elderly Americans willing to purchase Unum policies that will provide them the insurance they will need in the future? Don’t our senior citizens have the right to make future investments in their healthcare, so they will not spend their golden years wallowing in medical debt?

If you or someone you know has been victimized by the Unum scam and have had your Unum disability insurance claim denied, contact a Unum lawsuit attorney. Visit the Unum/UnumProvident Disability Insurance Claim Denial Class Action Lawsuit Investigation page to receive your free consultation.