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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75528  
Subject: Long-Term Care Insurance Date: 6/22/2011 3:31 AM
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If you've bought LTC insurance, have you factored something like this into your budget?

http://www.courant.com/business/hc-long-term-care-0622-20110...

"From the time that I signed for the policy, which was July of '96, there has been no increase in the premium for 15 years," Jim Morrow said. "Then, all of a sudden, a 39 percent increase."

</snip>


I guess that's not as bad as having health insurance premiums rise 10% to 15% each year.

intercst
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Author: BruceCM Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69161 of 75528
Subject: Re: Long-Term Care Insurance Date: 6/22/2011 10:25 AM
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My sense is that LTCi premiums are going to go much higher..in some cases, much, much higher.

From this article:
...according to some experts: Insurance companies underpriced nursing home policies years ago and are now playing catch-up.

and

"We think we've done a pretty good job of holding down rate increases," said Paul Lombardo, insurance actuary at the department. "We've had requests for increases of two-, three-, four-hundred percent."

and

"A number of carriers are concerned about having underpriced this product … using their assumptions that they used for some time, and not getting enough premium to cover the liability that's taking place,"

The industry seems to be saying that due to circumstances beyond their control, costs of LTC are much higher than they thought they'd be. Sorry, I don't buy it. Insurance actuaries are a smart group, and to think that they somehow all managed to miss their loss projections by such a margin is not very believable. My guess is that they knew they were underpricing policies when they first began promoting QLTCi in 1997 and have been delaying the inevitable premium hikes for as long as possible to collect as much in premiums as possible. Of course, this means the premium hikes will be large to make up for past artifically low premiums...but this was made possible by relatively low lapse rates.

But bottom line...QLTCi holders should expect fairly heft premium hikes in the years ahead.

BruceM

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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69163 of 75528
Subject: Re: Long-Term Care Insurance Date: 6/22/2011 10:49 AM
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That's one of the reasons I haven't bought yet. That and I'm way to young. Besides, I figure I can leave the country and live much cheaper and get cheaper care.

JLC

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Author: Ringfinger Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69193 of 75528
Subject: Re: Long-Term Care Insurance Date: 6/27/2011 2:18 PM
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I need to begin the consideration process.

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Author: Howie52 Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 69197 of 75528
Subject: Re: Long-Term Care Insurance Date: 6/27/2011 10:17 PM
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"I guess that's not as bad as having health insurance premiums rise 10% to 15% each year.

intercst "

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Well, you are getting an immediate return on money paid for health
insurance.
LTC payments may not buy you anything if the company policies are
too restrictive to collect, if you cannot continue paying,
if the company you are paying goes bankrupt, or if you die before
needing any service.

Howie52
Buying something that you will not need for possibly 30 years or so
carries a risk risk premium.

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