Low interest rates, uncertainty about prices, and general pessimism make this a difficult time to sell any financial product, and especially a product that’s supposed to pay long claims that may start decades from now.
See also: LTCI Watch: Double whammy
Who’s truly eager to promise to pay premiums for long-term care insurance (LTCI) for decades when it seems somewhat optimistic to assume that the United States will be around for decades?
See also: LTCI Watch: Macro risks
But the United States has survived almost 238 years. Many of the big insurers in the LTCI market have lasted more than 100 years. It seems as if the logical approach is for people in the LTCI market and other forward-looking markets to proceed as if the economy will be around for a while.
One part of that is providing a minimum level of customer service — for the products that failed as well as for the products that did well. Con artists sell people glowing promises, then disappear. Insurance companies are supposed to answer their phones.