Long-Term Care Insurance Industry Reports Struggles<\/b><\/p>\n
Despite the potential benefits of long-term care insurance for many people, the long-term care insurance industry is facing significant challenges.\u00a0 Insurers have had to pay out higher than expected benefits.\u00a0 They have seen lower than expected returns on investments due to low interest rates. \u00a0As a result, several major insurance companies, including Metlife, Prudential Financial, Unum Group, and Allianz are no longer writing new long-term care policies.\u00a0 Insurers remaining in the market are raising rates.\u00a0 According to the American Association for Long Term Care Insurance, new policies are already 20% more expensive this year than in 2012.\u00a0 Genworth Financial, the largest seller of long-term care insurance in the United States, recently announced it is hoping to get regulatory approval for between $200 and $300 million in rate hikes on all policies sold between 1974 and 2001.\u00a0 Adding to the industry\u2019s problems, sales of new policies have been sluggish.\u00a0 Genworth reports that its sales for the first half of this year are only $83 million- less than 65% of what they were for the same period last year.<\/p>\n
In addition to becoming more expensive, long-term care insurance policies are also becoming harder to get. \u00a0Genworth announced earlier this year that it would tighten underwriting standards for new buyers.\u00a0 This means it will only approve policies for healthier customers.\u00a0 The company also plans to offer shorter benefit periods and lower daily benefits.\u00a0 In addition, it will be charging higher premiums for women, who are more likely than men to receive benefits.<\/p>\n
Despite these problems, long-term care insurance can be a valuable planning tool.\u00a0 The cost of long-term care continues to rise.\u00a0 Many seniors can easily go through an entire lifetime of savings in a year to pay for it.\u00a0 Connecticut is the second most costly state to receive long-term care, behind only Alaska.\u00a0 The average annual cost of nursing home care in Connecticut is over $139,000 for a semi-private room. \u00a0The cost of a private room can be significantly more than that.\u00a0 Long-term care insurance can act as a safety net for those hoping to protect their assets from these high costs.<\/p>\n
It is important to consult an advisor familiar with long-term care insurance before purchasing a policy.\u00a0 You will need to look at all the benefits an individual policy provides, including the coverage period, the daily benefit amount, and the level of inflation protection.\u00a0 Each of the benefits provided will affect the cost of the policy.\u00a0 You will also need to consider issues like whether the policy will include coverage for assisted living facilities or home care.\u00a0 Depending on your age and whether you have already been diagnosed with any chronic medical conditions, you may not even be able to get coverage.\u00a0 If you have this type of health issue and are approved, you may have to pay higher premiums.<\/p>\n
To maximize value to clients, long term care insurance should be considered within the context of comprehensive elder care planning.\u00a0 Your financial advisor should work collaboratively with an experience elder care attorney to minimize your cost and maximize the results that you and your family receive.\u00a0 To learn more about long term care insurance and how you might incorporate it into your elder care plans, call our office at 888-822-8778.<\/p>\n
Long-Term Care Insurance Industry Reports Struggles<\/a><\/p><\/blockquote>\n