If you, or a loved one, are part of the growing population of baby boomers facing rising Long Term Care (LTC) premiums, we urge you to take note of today’s post. This growing trend is impacting aging Americans from coast to coast.
Addressed in an article in the Wall Street Journal last month, this issue has become a hot button topic among insurance professionals and consumers alike. Leading U.S. insurance carriers first began offering long term care insurance in the 80’s and 90’s. These policies came with the promise of superior nursing home and in-home healthcare, for aging Americans, than that offered by Medicaid. The Wall Street Journal article featured several seniors directly impacted by a rise in LTC premiums; including a retired Michigan doctor and his wife. In recent months he received notice that his annual long term care premium would be rising by 25% while his wife faces an astounding 46% increase in her annual LTC premium.
The reason? When insurers first began offering these products they grossly underestimated the cost of LTC coverage. In addition, they overestimated policy cancelation rates. Most carriers forecasted a 5%-7% annual cancelation rate which, despite skyrocketing LTC premiums, is currently at less than 2%. What does this tell us? Even when faced with mounting long term care premiums, most seniors are holding onto their coverage for fear of even higher out-of-pocket costs for long term care.
Universal Life & LTC Combo Products
At IntelliQuote we have been hard at work, since signs of rising long term care premiums first surfaced, helping aging Americans find affordable LTC alternatives. We are urging baby boomers, and their children, to instead look into ‘combo products.’ These policies combine permanent life insurance and LTC coverage. In short, they provide an LTC nest egg that, if not used, will be left to a named beneficiary at the time of the insured’s death.
We are proud to say that we have already helped many seniors avoid the costly trap of exorbitant long term care premiums, while providing the peace of mind most baby boomers are seeking. If you’re interested in comparing instant life insurance quotes, and learning more about your options, we encourage you to contact us today!
Allow us to provide instant life insurance quotes from several top rated carriers. Your life insurance advisor will then explain your options and help you determine which is best suited to your needs. Don’t delay, contact us now at 1-800-963-6405.
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