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i hope so , because like all things once the price of insuring the smaller odds of happening reaches a pricwe point taking the risk becomes more attractive .
it is what it is because there are not a lot of choices when it comes to partnership plans . i wouldn't bother with the insurance if it was not for the partnership perks .
looking on line it looks like most insurers got 9-15% rate hikes passed for next year depending on location . you can google it . .
I apologize. I misunderstood what type of policy you had.
I thought you had a policy where the premium went up every year as the benefits go up every year.
Then I re-read your prior posts and learned that you have a NY State Partnership policy.
That means that the growth in the benefits each year does NOT make the premium go up each year.
You just happened to buy an "older policy form"--one that has been around for several years and one that used some of the older pricing assumptions.
And that is why you had the rate increase after only having the policy for one year.
i hope so , because like all things once the price of insuring the smaller odds of happening reaches a pricwe point taking the risk becomes more attractive .
Your statement would be correct if long-term care insurance companies were allowed to price their new policies, available for sale today, the same way they priced their policies 10 to 20 years ago.
Fortunately, insurance regulators do NOT allow any policy purchased today to use the old pricing assumptions.
41 states have passed very strict pricing regulations for any policy purchased today.
New poster, joined C-D just to defend LTC insurance? In what state do you sell it?
TDI, the insurance regulators, attempted to slow increases in long-term care when a law passed four years ago giving TDI the ability for the first time to approve or disapprove premium increases. But the law didn’t work as intended. Increases for various long-term care companies kept gaining approval.
Used to work in the health insurance reinsurance biz. Next group over were the long term care guys. In the biz, at the high level where I worked, LTC was considered a schlock product, similar to cancer policies.
The guys used to joke about the people selling LTC even more than the folks that purchase them.
Yes, there is some statistical chance you will fit the narrow scenario where your policy will pay something, but not likely
As I recall, many if not all policies have a period for which services are used but for which benefits were not paid, before the benefit cut in. The problem is when this so called waiting period is taken into account and average time in LTC eligible period are compared, and then chances of entering LTC to begin with are overlaid, the chance for a positive ROI is just about nil.
Sorry I don't remember the more technical terms, but I am 100% certain of two things.
First, not one person in the LTC shop had the product, and two, the guys schlepping it on poor old Joe Publc were held in very low regard by the other insurance executives.
I hated the health care business so I hope something positive has happened and I wish you all well with your policies. I just worry about the product.
One thing you need to look at is family history of dementia/Alzheimers, which is about the only reason I'd even consider some kind of LTC coverage, as there is a family history of it (dad & GM). My widowed aunt came down with Alzheimers in 2000 at age 68, entered an ALF in 2000, and stayed there for 7 years ($4K/mo x 85 mo = $340,000), until even the ALF memory care wing could no longer keep her once she lost her ability to walk. She eventually was taken to her daughters for a month, then died in hospice. So in her case, LTC insurance would have been helpful. Alzheimers is a progressive disease, but I've known several other people who have lived with it even longer than my aunt.
As for myself, I've always said I'm never living in a nursing home or ever being dependent on anyone for care...my LTC insurance would be jumping in front of a bus . However, things can happen suddenly that won't even allow that option. Still can't bring myself to spend another $200+/mo on something I hope I'll never use, however. Thus LLN's post makes me feel a little better about my lack of future planning.
My widowed aunt came down with Alzheimers in 2000 at age 68, entered an ALF in 2000, and stayed there for 7 years ($4K/mo x 85 mo = $340,000), until even the ALF memory care wing could no longer keep her once she lost her ability to walk. She eventually was taken to her daughters for a month, then died in hospice. So in her case, LTC insurance would have been helpful.
Helpful for whom? It appears your aunt had sufficient resources to pay for her care up until that last month, so how would she have benefited from an LTC policy? Or did her family have to sacrifice to pay for her care?
These aren't idle questions, every family's situation is different. Would your aunt have been able to afford the premium, or would she have had to sacrifice to pay it?
you got that right . anyone who says that is the last insurance premium hike on an ltc policy is either selling them or smoking something they shouldn't .
Used to work in the health insurance reinsurance biz. Next group over were the long term care guys. In the biz, at the high level where I worked, LTC was considered a schlock product, similar to cancer policies.
The guys used to joke about the people selling LTC even more than the folks that purchase them.
Yes, there is some statistical chance you will fit the narrow scenario where your policy will pay something, but not likely
As I recall, many if not all policies have a period for which services are used but for which benefits were not paid, before the benefit cut in. The problem is when this so called waiting period is taken into account and average time in LTC eligible period are compared, and then chances of entering LTC to begin with are overlaid, the chance for a positive ROI is just about nil.
Sorry I don't remember the more technical terms, but I am 100% certain of two things.
First, not one person in the LTC shop had the product, and two, the guys schlepping it on poor old Joe Publc were held in very low regard by the other insurance executives.
I hated the health care business so I hope something positive has happened and I wish you all well with your policies. I just worry about the product.
LLN, thank you for your post. I started this thread because I've been trying to determine if LTC insurance makes sense. I found your post helpful. Your comments are consistent with conclusions I've started to draw. My preliminary conclusions are:
1) The principal benefit of LTCi may be psychological, because the financial benefits may be elusive.
2) The cost of a policy today that will cover you if you need 5+ years of care is expensive (ie, $5,000 to $10,000/yr for a couple, and maybe more).
3) Such a policy would include: 1) a $300/day or more daily benefit; 2) 5 years of coverage; and 3) 3% or more inflation protection.
4) According to the U.S. Department of Health and Human Services, there is a 69% chance someone 65 or over will need care. They also provide statistics that show on average that 69% needs 3 years of care: 1 of those years is at home with unpaid care, 1 year is at home with paid care, and 1 year is in a facility like a NH or ALF. I found other sources of info that corroborated the 1 year in a NH data point.
5) Therefore, the likelihood of a big financial hit is relatively small and/or manageable for a lot of people.
6) Even if you buy an LTCi policy, you wouldn't be completely covered if you have a 5+ year nursing home stay.
7) If you buy LTCi when you're 55 to 65, you must be prepared to make a 20 to 30 year commitment to stay with it without knowing how much that commitment will cost down the road.
I'm always on guard for confirmation bias. That is, seeking information that supports my thinking and avoids information that does not. With that in mind, what's wrong with these conclusions?
Last edited by HopHillers; 10-11-2015 at 05:34 AM..
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. However, things can happen suddenly that won't even allow that option. Still can't bring myself to spend another $200+/mo on something I hope I'll never use, however. Thus LLN's post makes me feel a little better about my lack of future planning.
