Why Are Long-Term Care Insurance Premiums Skyrocketing? скачать в хорошем качестве

Why Are Long-Term Care Insurance Premiums Skyrocketing?

Many individuals that have long-term care insurance policies are beginning to receive letters in the mail notifying them that that their insurance premiums are going up by 50%, 70%, or more in some cases. This is after many of the same policyholders have experienced similar size premium increases just a few years ago. In this article I’m going to explain: • Why this is happening • Are these premium increases going to continue? • Options for managing the cost of these policies • If you cancel the policy, alternative solutions for managing the financial risk of a LTC event Medicaid Trust Video:    • How To Protect Assets From The Nursing Home   Contact Michael Ruger with Questions: 518-477-6686 or [email protected] Visit our website: https://www.greenbushfinancial.com/ Subscribe to our channel for more financial planning tips:    / @greenbushfinancialgroup   #longtermcare #nursinghome #medicaidcrisisplanning #greenbushfinancial Frequently Asked Questions (FAQs): Why are long-term care (LTC) insurance premiums increasing so much? Premiums are rising because insurers underestimated how long people would live, how many would need long-term care, and how expensive care would become. Many carriers didn’t collect enough in premiums to cover claims and are now raising rates to stay solvent. With fewer companies offering LTC coverage today, reduced competition is also driving prices higher. Will long-term care insurance premiums keep increasing? Unfortunately, further increases are likely. Some insurance companies have already warned policyholders of potential future hikes of up to 200%–250% over the next several years to remain financially stable. Policyholders should evaluate whether their budget can withstand additional premium increases. What options do policyholders have when premiums rise? You generally have three choices: Keep the policy and pay the higher premium. Modify the policy to reduce coverage and lower costs (e.g., adjust inflation riders, daily benefits, or elimination periods). Cancel the policy and explore alternative strategies, such as self-insuring or using Medicaid planning. What happens if you cancel your long-term care policy? Canceling the policy means you lose the coverage and must find another way to manage the financial risk of a long-term care event. Common alternatives include self-insuring—setting aside the money you would have paid in premiums—or using Medicaid trust planning to protect assets while qualifying for care assistance later in life. What does “self-insuring” mean for long-term care? Self-insuring means saving and investing your own money instead of paying insurance premiums. You create a personal fund to cover potential future care costs. The benefit is that if you never need long-term care, those assets remain available to you or your heirs. However, this strategy requires disciplined saving and careful projections to ensure you have enough set aside. How does a Medicaid trust help with long-term care planning? A Medicaid trust allows you to move certain assets out of your name, protecting them from future long-term care spend-down requirements. After a specified look-back period (five years in many states), those trust assets are shielded, and Medicaid can help pay for nursing home or assisted-living expenses. Are some long-term care insurers at risk of insolvency? Yes. Some companies have disclosed that without major premium increases, they may not have enough assets to pay future claims. A few have even received credit downgrades from agencies like A.M. Best, signaling weakened financial stability. What should policyholders do before deciding to cancel or modify their LTC policy? Work with a financial planner or insurance specialist to evaluate your options carefully. Consider your current health, available assets, other income sources, and long-term care preferences. Once you cancel or reduce coverage, those changes are typically irreversible.