Should insurance firm cancel this policy?

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Photo: cohdra/

Many suspect that insurance companies try to back out of insurance contracts so they don’t have to pay when a customer needs them.  That’s at the heart of one man’s battle with his long-term care insurance company.

The 90-year old Martinsville man had a long-term care policy for  nearly two decades, but then he  missed a payment for his half-year premium. The company allowed him to appeal the cancellation, but it didn’t accept a doctor’s letter that explained he was “confused” at the time the payment was due. The company said that’s not the same as “cognitive impairment,” which is the term used in the policy. To date, the policy is still cancelled and the consumer is filing a complaint with the Department of Banking and Insurance.

This conflict was detailed in a Bamboozled column on, which also shows how to have a backup plan in case you’re ever incapacitated and can’t make payments.