LTC Premiums – Rate Increases and the Press
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…