finance
LONG-TERM CARE INSURANCE
It ’ s not your father ’ s Cadillac by Rob Brinkman
In the 1980s , General Motors launched a campaign for one of its car lines with the slogan “ This isn ’ t your father ‘ s Cadillac ”. They recognized the pressure that European luxury sedans were putting on the iconic brand that for decades had led the General Motors stable . Just 40 years ago , nearly onethird of all luxury cars sold in the U . S . were Cadillacs . Now , less than 7 %.
Over time , the distinctive tail fins and “ bigger is better ” dimensions morphed into a boxy Chevy with a Cadillac badge slapped on it . GM made a bet with a smaller version called the Cimarron . It sold so poorly that it was axed from their lineup by 1988 , just six years after its launch . But that is not the point of my analogy .
Nursing homes started to spring up in the 1960s to provide long term care outside the family . But not everyone could afford it , and as some people faced selling their homes or depleting their savings to pay for Mom or Dad ’ s care , the insurance industry began addressing the need .
In the 1980s and 90s , you could have purchased a “ Cadillac ” long-term care policy . Meaning , it was the equivalent of the iconic car brand that everyone wanted to drive . Those long-term care policies were a bit pricey , but the payout coverage was extensive and comprehensive . At least a dozen major insurance carriers provided LTC policies . However , there was a major flaw and like Cadillac , the insurance companies took too long to figure it out and now , LTC policies , if you can find one of the three or four available , are expensive and limited in coverage .
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