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Old 01-29-2016, 05:27 AM   #81
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That was the point I was making regarding the fact that while the premiums have increased by 95% over the past 16 years, the benefits have gone up 118%.
Fair point, but you should have already paid for the inflation adjustments when you selected a policy with inflation protection which can cost several times more in premiums than one with no inflation rider. That cost should have already been "baked in" to what you were paying from the get-go.

So really you are paying 95% more.... but you probably paid at least twice as much per month as one with no inflation coverage so in some sense you are paying at least 290% more than one that had no inflation coverage at the original benefit amount 16 years ago.
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Old 01-29-2016, 06:00 AM   #82
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all our state partnership plans require at least 5% inflation adjusting . you can't buy one with out it .
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Old 01-29-2016, 06:04 AM   #83
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all our state partnership plans require at least 5% inflation adjusting . you can't buy one with out it .
OK, but that said, isn't it still true that when you purchase a plan with inflation adjustments, the projected cost of the inflation adjustments should have already been factored into the premium from Day One?

Until these products can be stabilized to stop creating massive increases on "locked in" rates, I can't get myself to consider one.
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Old 01-29-2016, 07:06 AM   #84
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Until these products can be stabilized to stop creating massive increases on "locked in" rates, I can't get myself to consider one.
I can understand that - buying LTC insurance today is a real crapshoot.

One point of clarification. The rates for our policies were never advertised as "locked in" and we understood the rates would almost certainly increase over time. We had a 10 year guarantee of premium and didn't see our first increase until year 14.

We are going to keep the policies for now because even though our two rate increases have been jarring, the premiums are still on the low side. We have similar coverage to mathjak (3 year policies with 5% inflation) and our combined annual premiums are now $2,276 vs his $7,900. That seems to be a bargain by comparison.
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