Some people may not associate me with being the ultimate skeptic of promises made by insurance companies. I don't trust them with providing for my longterm care or longterm income source. I've not seen an annuity that makes financial sense and frequently rant about them when the topic comes up.
With that disclosure out of the way, I recently had another insurance company trick played on me that reinforces my beliefs. First, all insurance company products are a contract between you and the insurance company.
Ten years ago I bought a 15 year level term insurance from the absolutely highest rated insurance company available. It was pretty much top on all the rating services. They got acquired by a slightly less highly rated company but still just about as high.
Last week when my bill arrived for the annual premium I was informed that my policy had been acquired by another company. I checked their ratings and they are still in the "A range." Unfortunately, they are down anywhere from three to five levels from the very top.
They didn't raise my rates because they can't but they did reduce the credit quality of my potential benefit.
I suspect that this sort of risk migration will start to happen with longterm care policies when the potential beneficiaries begin approaching the date when payouts can be expected.
With that disclosure out of the way, I recently had another insurance company trick played on me that reinforces my beliefs. First, all insurance company products are a contract between you and the insurance company.
Ten years ago I bought a 15 year level term insurance from the absolutely highest rated insurance company available. It was pretty much top on all the rating services. They got acquired by a slightly less highly rated company but still just about as high.
Last week when my bill arrived for the annual premium I was informed that my policy had been acquired by another company. I checked their ratings and they are still in the "A range." Unfortunately, they are down anywhere from three to five levels from the very top.
They didn't raise my rates because they can't but they did reduce the credit quality of my potential benefit.
I suspect that this sort of risk migration will start to happen with longterm care policies when the potential beneficiaries begin approaching the date when payouts can be expected.