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If you go back to 1996 and the passage of HIPAA which created Qualified Long Term Care Insurance, which banned 'Medical Necessity' as an insurance trigger, transferred the decision of initiating LTC insurance benefits to the insurer thru ADL triggers and allowed insurers to price LTC premiums based on actuarial assumptions the insurance actuaries unilaterally get dramatically under priced premiums in the early years. But then the premiums rise sharply over the ensuing years, more insurers discontinue offering new policies, the existing policy holders are informed their policy elimination period has increased or the annual inflation adjustment has been reduced along with premium hikes they can lobby state legislatures they must have to be able to pay future policy benefits and....well get the picture.

Having retired from the financial planning industry I can say from my experience with them, the insurance industry are the grand masters of deception and self interest. The early years CEOs and execs of NY Life and J. Hancock received sizable bonuses for the increased revenue from new LTC policy sales. They got what they wanted. Those policy holders who were 'lucky' enough to become disabled in the first 10 to 15 years of policy ownership qualifying for LTC benefits have benefited from the policy. Those who remain independent into later years will likely not be so 'lucky'.

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