Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
NYT on rising premiums for life & LTC insurance
Old 08-13-2016, 11:18 AM   #1
Recycles dryer sheets
I was misinformed's Avatar
 
Join Date: Jun 2015
Posts: 53
NYT on rising premiums for life & LTC insurance

A rather alarming NY Times article on how low interest rates are "forcing" even major insurance companies to drastically raise premiums on life insurance and long term care policies.

http://www.nytimes.com/2016/08/14/bu...pgtype=article

The article seems to mainly rely on anecdotes rather than systematic data, but the stories are distressing. I was very surprised to see this quote:

"The word ‘insolvency’ hasn’t been said very loudly, but certainly on the street people are concerned about insurance companies and their promises and the ways they are trying to avoid keeping their promises,” said J. Robert Hunter, a former Texas insurance commissioner....

In my financial planning I have been considering the insolvency of major insurance companies in the "asteroid strike" category, but maybe that is naive....
__________________

__________________
I was misinformed is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-13-2016, 12:20 PM   #2
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,538
The War on Savers has been expanded to be a declaration of war on insurance consumers.
__________________

__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Old 08-14-2016, 11:14 AM   #3
Full time employment: Posting here.
 
Join Date: Jul 2013
Location: San Diego
Posts: 597
The article just illustrates the fact that insurance premiums of all types are a function of the financial market and not, for the most part, insurance payouts.
__________________
AllDone is offline   Reply With Quote
Old 08-14-2016, 12:31 PM   #4
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,538
Quote:
Originally Posted by AllDone View Post
The article just illustrates the fact that insurance premiums of all types are a function of the financial market and not, for the most part, insurance payouts.
People don't normally have to think about it in typical interest rate cycles. But the Fed is so terrified of a market correction or economic slowdown that they keep rates near zero without much regard to the consequences *that* has.

Part of the problem is $18 trillion in debt. If rates for new Treasury issues rose by even 50-100 basis points, the impact on the budget would be very large. We've backed ourselves into a corner in that regard.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Old 08-14-2016, 03:14 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,164
Quote:
Originally Posted by ziggy29 View Post
The War on Savers has been expanded to be a declaration of war on insurance consumers.
The war on savers has plumped up my stock portfolio nicely.
__________________
Yes, I have achieved work / life balance.
travelover is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Noticed more people holding signs "need work or food" rayinpenn Other topics 3 05-03-2015 02:51 PM
Lump sum life insurance with LTC insurance rider tmm99 Health and Early Retirement 1 07-22-2013 02:17 PM
Life Insurance with LTC Features? RetireeRobert Life after FIRE 4 12-17-2007 10:05 AM
(FAQ archive): Long-term care (LTC) and LTC insurance Nords Early Retirement FAQs 0 10-24-2007 11:02 AM
Who's to blame for rising insurance costs? wildcat Other topics 18 12-23-2005 08:26 AM

 

 
All times are GMT -6. The time now is 07:54 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.