One of the challenges faced by long-term care insurance policy holder is the increase in ltci rates. A lot of people are on the verge of cancelling their policy because they think they can no longer afford it. However, cancelling your policy is a waste of money, and knowing that there is a great chance that you will be needing long-term care sooner or later, it can cost you your lifetime savings. There are ways on how to deal with climbing long-term care insurance rate rather than cancel you policies. Also, cancelling your policy and getting a new one could mean higher premiums because your age is a factor that affects the cost of ltci. You may opt to deal with the increase, you could either shorten your benefit period, lessen your daily benefit, lower the inflation rate or take advantage of shared care rider if you have a spouse. In the end, keeping your ltci policy will still be worth it
Inflation, you can’t live with it, and economists say we can’t live without it. But when you get a letter telling you that the cost of something you are paying for is going up, it’s not a pleasant experience.
There are several things you can do to mitigate a price increase on your LTC insurance policy, but lets first look at why it is going up. The early policies, from the 80’s and 90’s were offered while this industry was in its infancy. The insurance companies made several mistakes. One in your favor is that the companies have learned that couples (who love each other) will take care of each other longer before calling in the hired help. Thus couples discounts are larger now than they used to be.
One assumption that turned out to be incorrect was that over time, the insurance companies thought some percentage of people would simply drop…
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