Guardian Life Insurance Company of America says it will halt sales of long term care (LTC) insurance by the end of 2011.
Guardian, New York, has been selling individual LTC policies through its Berkshire Life Insurance Company of America unit since 2004.
Guardian had a small presence in the LTC insurance market to ensure that its financial representatives had a comprehensive portfolio of products to address the changing needs of their clients, says Gordon Dinsmore, president of Berkshire Life, Pittsfield, Mass. Its decision to leave the market was made after an extensive review of the business and decided to focus on its core life and disability income insurance business, he said.
Guardian has fewer than 9,000 LTC policyholders, and those customers make up less than 1% of the company's customer base, he says.
Guardian could reevaluate its plans and decide to discontinue sales of LTC insurance before the end of the year, Dismore says.
Guardian will keep its promises to customers who already have Guardian LTC policies, Dinsmore says.
Because the company's LTC policies are guaranteed renewable, coverage cannot be canceled if premiums are paid on time, and Guardian LTC policyholders can make changes to their coverage under the terms of their contracts as long as the contracts are in force, Disnmore says.
