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Old 01-29-2016, 04:27 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, 05:00 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, 05:04 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, 06:06 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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Old 05-16-2018, 04:05 PM   #85
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FWIW, according to today's WSJ Mass Mutual is asking for a premium increases on some of its LTC policies that average 77%.

I get the impression from the article that the increase is on about 2/3 of their policies and seems to be on older policies that were issued before the company realized that it had under priced the policies. Apparently, Mass Mutual has been better able to absorb the costs than some other companies, but now they don't see that continuing.

Note: the link below is behind a pay wall.

https://www.wsj.com/articles/massmut...s&page=1&pos=2

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The potential increases would apply to about 54,000 of its 72,000 long-term-care policyholders, the company said. In total, the insurer is asking state regulators to approve increases averaging about 77% per customer, a company spokeswoman said.
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MassMutual said the increases would apply to its “earlier policy series,” some of which have lifetime benefits that are no longer sold. Policyholders will have options for holding down an increase. Typically, insurers allow consumers to give up features such as inflation adjustments or otherwise reduce benefits.
Of course, the various states have to approve the increase.
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Old 05-16-2018, 07:57 PM   #86
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The MassMutual action is not particularly surprising. LTC insurance should be renamed: BOHICA.
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Old 05-17-2018, 11:36 AM   #87
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Yeah, if you didn't buy (before 1995) one of those legendary can-never-increase-the-premium John Hancock LTC policies there isn't much that makes sense out there.
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Old 05-17-2018, 01:59 PM   #88
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DH and I bought LTC policies in 2003 from MetLife. $100 per day, 5% compound annual increase in benefit, no cap on benefits. I paid $5k per year for 8 years, then 7.5k for 2 years. After 10 years, NO MORE premiums! After the last premium was due, I was notified that the next premium would increase 45%. I laughed since the contracted premium was $0 so I would pay the 45% increase on $0!
These 10 pay policies are no longer issued, the 5% compound growth is now 3% on new policies and there is a lifetime cap on benefits for new policies, so I got in just under the wire!
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Old 05-17-2018, 02:04 PM   #89
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Yeah my wife has LTD insurance. I wonder if itís worth it since they can increase premiums at their whim
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Old 05-17-2018, 03:34 PM   #90
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Yeah, if you didn't buy (before 1995) one of those legendary can-never-increase-the-premium John Hancock LTC policies there isn't much that makes sense out there.
This is the type of policy that DH has as did his parents. Purchased around 1990.

Difference is Mutual of Omaha not JH. Its a 100 per day equaling 5 years with a 30 day wait. Comes in at 15 per month.

Wish we knew then about LTC what we know now and would have bought more.
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Old 05-17-2018, 09:04 PM   #91
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DH and I purchased a paid up in 10 LTC policy from Allianz in 1998 with a 5% compound annual increase. Smart purchase at the time assuming they will pay out when we need the benefit.
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Old 05-19-2018, 02:19 PM   #92
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There are only 2 companies that offer LTC unlimited lifetime benefits now.

One America (hybrid) and National Guardian Life (traditional insurance). One America Asset Care has 1 premium, 10year, 20 year or lifetime with guaranteed no increase but it is pricey as is NGL.
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