Monthly Archives: March 2012
No one ever wants to hear they are experiencing an increase in their long term care insurance premium…or any premium, for that matter. There’s a few things, however, that recent media reports don’t always explore that are important to point out:
1. A rate increase must be substantiated. Carriers do not want to increase, it’s bad PR and not in their interest. An increase in rates underscores the need for their coverage. People are living even longer, becoming even sicker, with conditions that are even more chronic. And the costs keep rising.
2. The increases are usually based on much older issue ages. The average age of a new policyholder has gone from 72 to 56. So increases, even modest increases, are felt much more harshley. The fastest growing group of new policyholders are 45-54. If they are subject to rate increases in the future, the difference will be much more manageable, since it will be based on a much lower number.
Just a thought…
The founder and head of the American Association for Long Term Care Insurance is redoubling efforts to help consumers avoid some costly mistakes.
Among them: assuming their group coverage is a better deal than an individual plan (it often is not, especially for married couples), working with an agent who can only show one carrier (potentially ignoring companies that can offer better coverage for less money) and not taking advantage of their good health (carriers with stricter underwriting tend to have better value).
This video, from Suze Orman’s Money Class (and featured on the OWN network) is just the latest example of the financial guru’s promotion of long term care insurance. We are so pleased that she is continuing her effort to make people aware of the need to plan ahead. What’s even better is she has changed her tune about when to begin investigating (she used to say 60, now late 50s – I suggest ages, 45-54 the fastest growing age bracket).
I would amend one piece of her presentation – she does speak a lot in this video about nursing home care. She’s right to mention it, but part of LTC awareness is helping people understand long term care insurance is the most potent tool people have to never darken the door of a nursing home and to age safely in place. Thanks, Suze!
See the video here: http://www.youtube.com/watch?v=jPUo8CivUz8&feature=share