LTC premium increase

[veremchuka]

I've read that people are getting increases at BH for 2 years and today John Hancock got me. 15%, they wanted 25% and will continue to ask in future years for another. Great.

I'm not changing anything, the increase is just under $200 by a dollar or two. One day in any facility covers that yearly increase! Fact of life, have to figure costs are skyrocketing so they will ask for premium increases.

 

[samclem]

I've read that people are getting increases at BH for 2 years and today John Hancock got me. 15%, they wanted 25% and will continue to ask in future years for another. Great.

I'm not changing anything, the increase is just under $200 by a dollar or two. One day in any facility covers that yearly increase! Fact of life, have to figure costs are skyrocketing so they will ask for premium increases.

The costs may be rising, but unfortunately your increased premiums won't be buying you any additional coverage. You paid for a set $ benefit per day (maybe adjusted for inflation) and that's all you'll get, despite paying higher premiums. JH (and other insurers) bet that a lot more folks would let their policies lapse, and that's not happening. So, they are raising your rates to cover their bad bet.
They sell annuities, too, for anyone that wants another "you lose if we lose" multi-decade proposition.

 

[bUU]

The way our financial adviser explained it, the process to get rate hikes is so onerous that the insurers "save up" and file only ever few years or so, so you get infrequent, substantial rate increases.