Your Parent's Long-Term Care Policy Could Lapse Without You Knowing

If a parent has a long-term care insurance policy, don't assume it remains active when the time comes to make a claim. The reality is that policies lapse more often than families expect, and usually over something as simple as a missed premium payment.

Many policyholders are proactive and name a third-party lapse designee;  someone the insurer notifies if a payment is missed. If a parent selected you as their designee, that's a good start, but it has its limits.   Being a designee typically only covers missed-premium payment alerts. It does not mean you'll hear about other changes a parent might make to their coverage which can have large and often costly consequences, including but not limited to reducing their coverage, altering policy terms, and selecting a new payment method.  These gaps matter most if a parent shows any signs of memory loss or confusion.   A parent in early cognitive decline might miss a payment, misread an important notice, or change their coverage without realizing the long term implications.  None of these will necessarily trigger any form of notice to you.  If you notice any of these warning signs, there are important steps you can take.

• Be proactive and ask the carrier directly what you can expect to be notified about, and importantly, what you're not

• Ask about becoming an authorized contact, not just a lapse designee

• Talk to your parent about power of attorney or another authorization for reviewing statements

• Set up autopay, and check in on the policy periodically yourself

If a policy has already lapsed, or your parent gave up their coverage, don't assume it's unfixable. Contact an attorney who specializes in long-term care insurance claims right away as reinstatement is often possible, but the window doesn't stay open forever.