My fear is that as I grow older I will be literally priced out of the market about the time I am most likely to need the insurance.
That's probably how the things are priced in the first place.
My fear is that as I grow older I will be literally priced out of the market about the time I am most likely to need the insurance.
Update to this old thread.
Two years ago we were notified of our first premium increase:
Today we were notified our LTC insurance premiums were going up another 30%. That's a increase of 95% in rates during the 16 years we've had the insurance. The premium for each of us is now $1,138, a compound increase of 4.3% per year.
Edit: Note the policies have a 5% per year inflation rider, so the increase in benefits continues to exceed the increase in premiums - FWIW.
My fear is that as I grow older I will be literally priced out of the market about the time I am most likely to need the insurance.
That's probably how the things are priced in the first place.
I have questions/concerns as to the inflation rider:
If it really was 5% per year, then if I bought a 200K policy ten years ago, wouldn't I consider it a 325K policy now ? (approximate number).
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%.
all our state partnership plans require at least 5% inflation adjusting . you can't buy one with out it .
Until these products can be stabilized to stop creating massive increases on "locked in" rates, I can't get myself to consider one.
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.
Of course, the various states have to approve the increase.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.
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.
Once again, I'm updating this old LTCi thread after receiving notice of a premium increase of 64%. This follows an increase of 50% in 2014 and another 30% in 2018.
Our annual premium for each of our policies started at ~$600, increased to $875 in year 14, then to $1,175 four years later. This increase will bump the annual premium to $1,870. (The details of the policy coverage can be found in previous posts on this thread.)
One option I have is to drop the 5% compounded annual benefit increase, locking in the current maximum benefit amount at its current $290,000 ($265/day x 3 years). This would drop the annual premium from $1,870 to $570. While this is tempting, the new $1,870 premium doesn't seem unreasonable when compared to some of the other amounts I've seen quoted for similar coverage.
I'd be interested in hearing what others have to say about what they would do - and yes, I know many of you would never have taken out the coverage to begin with.
Once again, I'm updating this old LTCi thread after receiving notice of a premium increase of 64%. This follows an increase of 50% in 2014 and another 30% in 2018.
Our annual premium for each of our policies started at ~$600, increased to $875 in year 14, then to $1,175 four years later. This increase will bump the annual premium to $1,870. (The details of the policy coverage can be found in previous posts on this thread.)
One option I have is to drop the 5% compounded annual benefit increase, locking in the current maximum benefit amount at its current $290,000 ($265/day x 3 years). This would drop the annual premium from $1,870 to $570. While this is tempting, the new $1,870 premium doesn't seem unreasonable when compared to some of the other amounts I've seen quoted for similar coverage.
I'd be interested in hearing what others have to say about what they would do - and yes, I know many of you would never have taken out the coverage to begin with.
Barely over $150 a month. I don’t think I could get a quote for both of us for that, at least with inflation protection, and we are still in our early 50s. I think it shows how badly they underpriced that policy to begin with.Honestly $1,870 annually seems cheap to me.
I've been down a similar path til this year said enough is enough. Just feels wrong to chose between paying more or getting less coverage. I'll take my chances for now.
Honestly $1,870 annually seems cheap to me.
Barely over $150 a month. I don’t think I could get a quote for both of us for that, at least with inflation protection, and we are still in our early 50s. I think it shows how badly they underpriced that policy to begin with.
we took 300 dollars a day for 3 years with a 5% inflation adder each year .
i am 63 and wife 65 . we took it two years ago and pay 7900.00 a year for both of us
While this is tempting, the new $1,870 premium doesn't seem unreasonable when compared to some of the other amounts I've seen quoted for similar coverage.