No. of Recommendations: 0
I see two major issues with LTC policies:
1.) Premium increases
Premiums increase based on the class and not the individual. Still there are going to premium increases, and the amount is unpredictable.


Agreed that premium increases can be an issue, but as you note, these are raised on the class. We've had our policies for almost 10 years, and are still paying the same premium.

2.) Insufficient coverage
Too little and the policy is useless. Unless, you have the assets to make up the difference between the cost and the policy benefit, the policy is useless


I can't speak for other policies, but when we got ours, we opted to get enough coverage, based on the average cost at the time, so that we would not need a lot of our assets to cover the difference. We took the time to research the average costs, and the policy increases with inflation. That may not be enough, but it is still a lot better than nothing, and so this is something that people need to investigate.

Most policies are only for 3 or 5 years. New life time policies have been discontinued, and the premiums for the existing lifetime policies have experienced significant premium increases.

Average stays are for under 5 years, and for most people, that will be sufficient. My fear is that I will have Alzheimer's and need longer care, so we do have one that is life-time. However, as noted above, our premiums have not increased since we purchased them almost 10 years ago. Perhaps others have different experiences.
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