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LTC rates heading higher
Old 02-23-2010, 04:57 PM   #1
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LTC rates heading higher

Think this article explains some of the reasons cited for the LTCI increases some have experienced this year. industry is saying low interest rates are part of the problem...

Article from Employee Benefit website...


LTC underwriters expected to seek hefty rate hikes

By Editorial Staff
February 21, 2010
A steep increase in long-term care insurance (LTC) premiums is in the forecast for 2010, with some of the industry’s largest underwriters expected to seek permission from state regulators to pursue such action.
Among the reasons recently cited by A.M. Best Co. analyst Jeff Lane in a published report: ultra-low interest rates, which have eroded insurance company investment earnings, as well as policyholders living longer and holding onto their policies.
With regard to the former point, the American Association for Long Term Care Insurance estimates that investment returns finance up to 60% of LTC benefits. Less rigorous medical standards in older policies also play a role, resulting in an unexpectedly high number of LTC claimants.
The Prudential Insurance Company of America, Met Life Inc. and John Hancock Life and Health Insurance Co. have sought rate hikes ranging from 18% to 25% on policies that were underwritten a decade ago, according to Investment News. Policyholders who were age 70 or older when the policies were sold are exempt in most cases.
Claude Thau, an LTC insurance wholesaler and president of Thau Inc., noted that financial advisers often are caught off guard by such increases because such activity is rare, though they’re now more cautious. Added D. Randolph Waesche, president of Resource Management Inc., argued that policyholders should not drop coverage in the face of a rate increase when factoring in higher costs relative to the benefits provided.
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Old 02-23-2010, 05:13 PM   #2
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It's getting to the point where it seems preferable to just put a bullet through your head when you are becoming very ill and.or unable to care for yourself...
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Old 02-23-2010, 07:02 PM   #3
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It's getting to the point where it seems preferable to just put a bullet through your head when you are becoming very ill and.or unable to care for yourself...
I think that was the better choice all along.
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Old 02-23-2010, 07:30 PM   #4
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It's getting to the point where it seems preferable to just put a bullet through your head when you are becoming very ill and.or unable to care for yourself...
Or perhaps turn back the hands of time a few decades and re-establish families and extended families in a way that puts day care facilities for the kiddies and nursing homes for the elderly relatives out of business?

Sorry..... just getting radical again.
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Old 02-23-2010, 07:38 PM   #5
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Or perhaps turn back the hands of time a few decades and re-establish families and extended families in a way that puts day care facilities for the kiddies and nursing homes for the elderly relatives out of business?

Sorry..... just getting radical again.
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The bad economy is forcing the re-establishment of families and I have seen older unemployed offspring moving back with their parents already...
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Old 02-23-2010, 07:57 PM   #6
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Youbet

The bad economy is forcing the re-establishment of families and I have seen older unemployed offspring moving back with their parents already...
I'd like to see the trend continue with gov't payments going to families for caring for elderly relatives at home as opposed to sending them to "the home" on Medicaid, etc. I think we have a problem in society when welfare type payments stop if family/friends step in and help.

The way this economy looks, folks are going to need to help one another. The gov't should not be discouraging this.
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