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I'm actually surprised it is even that high.
When I ask the question at seminars "How many of you have long-tern care insurance?" -it is probably about that percentage. However, I do notice that the younger the audience (talking 55 as being "young"), the fewer have LTCI.
For the Depression era people and those soon after, LTCI was an easy sell. It just made sense for planners and for those who don't necessarily think their investments will take care of everything that comes down the road. Now LTCI is a more expensive proposition and there are sensible alternatives.
I used to sell a good bit of LTCI -almost all through Alianz which had, to my mind, the best products at the time. I guess maybe too good, which is why they got out of the business. I sort of got away from LTCI at that point.
I think the runaway cost of medical care absolutely screwed all the actuarial predictions on profitability for the companies. They either got out or raised premiums. Assuming 14% is a good number, I think that will crater to single digits and lower over the next few years.
what are the sensible alternatives are to LTCi?
Life policies that let you tap into the death benefit for LTC needs.
Annuities with income riders that enhance the income available for LTC needs.
Faced with choosing between LTCI with rates that go up pretty much in step with age (and therefore in step with being more expensive when you are least able to afford the premiums) and the alternatives, I personally chose an annuity product that doubles the income available on the income rider if I or my wife are unable to perform 2 of the 6 activities of daily living, yada, yada.
Not a hard sale to myself and to my wife -and I got a nice commission.
are you under the impression that an LTCi premium can be increased just because someone reaches a certain age?
Someone 82 is more of a risk than someone 62. That goes for initial policy rates going in, and it goes for rate increases.
That is incorrect.
LTC insurance companies have never been allowed to increase the rates higher because someone has attained a certain age.
In fact, most of the cases where there has been a rate increase that was "age banded" the older ages got lower rate increases than the younger ages.
The biggest problem here is that you don't seem to be aware that Louisiana changed the rules regarding LTC rate increases.
I think the runaway cost of medical care absolutely screwed all the actuarial predictions on profitability for the companies.
originally posted by Charpress
BTW, Allianz offered a good policy, there were many other carriers that offered better policies at less premium.
.
Life policies that let you tap into the death benefit for LTC needs.
Annuities with income riders that enhance the income available for LTC needs.
Faced with choosing between LTCI with rates that go up pretty much in step with age (and therefore in step with being more expensive when you are least able to afford the premiums) and the alternatives, I personally chose an annuity product that doubles the income available on the income rider if I or my wife are unable to perform 2 of the 6 activities of daily living, yada, yada.
Not a hard sale to myself and to my wife -and I got a nice commission.