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|Subject: Long Term Care Insurance||Date: 3/23/2013 9:56 PM|
|Author: vkg||Number: 18325 of 19593|
The Fool article above is reporting what I expected, premiums for lifetime Long Term Care policies are escalating.
Around 10 years ago, we investigated buying Long Term Care Insurance. At the time premiums for life time coverage were reasonable, but I procastinated because there was no way of knowing what the premiums would be in 20 to 40 years and if we would be able to afford the premiums. The guarantee that premiums could not be raised based on individual health but on claims within your assigned class didn't seem much of a guarantee.
First generation policies were a complete flop for customers. More recent policies have better benefits, with the result is that the premiums are escalating. The future of existing policies isn't looking good. Not buying the policy we were offered was probably the right choice.
All other insurance (except for some life insurance) is meant to cover current risk. Long term care insurance is the only insurance that needs to be carried for decades without anyway to predict future premiums. With auto or homeowners insurance, it is possible to change companies and coverage at any time. Changing a long term care policy is expensive.
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