Know what you're buying with Long Term Care Insurance
Apparently, even rich and famous financial gurus can get sued. According to Forbes magazine, financial maven Suze Orman is being sued for civil fraud, conspiracy and breach of fiduciary duty for selling a long term care policy in the late 1990’s. Allegedly, promotional material used by Ms. Orman’s then financial advisory firm indicated “paid caregivers ‘cannot be a member of your immediate family living with you.’” This fact, among others I’m sure, induced the matriarch of one family to buy the Long Term Care Policy. Mom’s family did not reside with her, but lived nearby. After Mom received care from her family, she submitted reimbursement claims to the insurance company. The company denied the claims, however, citing policy language that barred payments to family members no matter where they lived. The moral of our story: be sure you know what you’re getting before you buy.
