We recently received a letter from the long term care company that my wife and I have our coverage with. *Note: 
I’m in the insurance business and have known for quite some time that long term care (LTC) policies are having a problem with rates vs. claims. But even I was shocked to see what our premium is about to do. Quoting from the letter we received:
“Unfortunately, (company name) has determined that it must increase the rates for all of the Group Long Term Care policies they have issued in the past. (Company name) is no longer issuing new group LTC policies but is allowing those already in force to continue, subject to a rate increase effective on November 1, 2014. (Company name) has a requested and has been approved by the Tennessee Department of Insurance a rate increase on these policies on an incremental basis. The first increase of 20% begins November 1. The second 20% increase will occur on November 1, 2015 and the third occurs on November 1, 2016!”
THAT IS A 60% INCREASE in Long Term Care rates over 3 years! WOW!
I personally don’t think any of us – past age 50 can afford to be without long term care coverage. And of course, if you buy before age 50, you save much more money on premium. However, because of a less than healthy society and an age bracket that is requiring more assistance with Activities of Daily Living (ADL) due to sickness, injury or dementia, either in their own home or in an institutional setting, long term care rates are escalating by large proportions with all companies!
I have written articles before about Long Term Care and no doubt will have more to write in the future but NOW is your time to get this valuable coverage. What my LTC company stated to us in the letter is that they won’t leave us. They are just going to charge more premium and if we have any of the needs for assistance going forward, that brings comfort to me and my wife for the long term. That is what insurance does and why I have enjoyed helping others with all types of insurance coverage’s for 36 years!
Guess it’s worth noting – the insurance guy has rate increases too! We’ll find a way to adjust. We can either take the increase – which we will probably do this next year. But we also have the option of decreasing the daily payout of the policy to reduce premiums. We may consider that in 2015 and 2016. Options are there but in our minds, NOT HAVING long term care coverage is not an option!
If we can help or assist you with LTC or any other insurance, we’re here and ready to earn your business. We’re in the trenches with coverage experiences like this one that is personal that gives me and my team increased ability to make sure we insure you correctly and at a price that is affordable to you.
EMAIL us at info@BentonWhite.com or call us at 615.377.1212.
