Unbelieveable.......Wife and I bought a John Hancock LTC policy in 2/04 as a level premium 10 year paid policy. We received a notice yesterday of a 90 % (that's N-I-N-E-T-Y percent) increase effective with the next premium 2/12. It was / is our understanding that we were buying a level premium policy that would be paid IN FULL in 10 years. In their letter, JH states that the reason for the increase is that they underestimated what their "claims experience" would be and that due to the low investment returns they have to increase rates.
Has anyone else had this experience recently. It sounds like a breach of contract, but I need to read the contract carefully and the fine print before calling the agent and company tomorrow.
One of the LTC blogs said that if you have net worth of 1.5 mill (not me) you can and probably should self-insure......I definitely plan to do this with the disability policy, since at age 57, and semi-retired I doubt if I'll ever be disabled long enough to rationalize continuing paying for this insurance (I'll just keep a couple of years expenses in a cash account)
Has anyone else had this experience recently. It sounds like a breach of contract, but I need to read the contract carefully and the fine print before calling the agent and company tomorrow.
One of the LTC blogs said that if you have net worth of 1.5 mill (not me) you can and probably should self-insure......I definitely plan to do this with the disability policy, since at age 57, and semi-retired I doubt if I'll ever be disabled long enough to rationalize continuing paying for this insurance (I'll just keep a couple of years expenses in a cash account)