How Do We Fix Private LTCi?

[yankee466]

My general question is.....if interest rates have no where to go but up in this country, then why should we be so concerned that policies that are being sold today....with today's lapse, actuarial, and interest rate assumptions theoretically built in...... will continue to make head line news with rate increases in the future. Lets take JH's Benefit Builder, or the new GNW Flex 2 product...already jacked up for things like female rates, with others soon to follow. I'll assume that once they all reach the level of NML, NYL, and MM.....no one will ever have a reason to raise rates.

I am not talking about the plans that GNW sold 20-30 years ago.,

Should we not expect a period of rate stability again....maybe like the first 30 years of LTC premiums? Or do we just assume the whole industry is evil, or clueless, and the game is rigged against us? They have pretty much eliminated unlimited benefits, so there are no unknowns for coverage on new blocks of business.

 

[Arthur Rudnick]

previously posted by csalter

The product is for the upper middle class who have assets worth protecting. I have a spouse who I don't want to impoverish or force to continuously care for me alone so that is why I got it. I can handle the cost for the 10 years I will pay, but the average person does not wish to have these expenses.

BINGO!
You nailed it. No agent is looking to make a presentation to someone with little in the way of income or minimum assets.

You're right, LTCi is NOT for the middle calss (like it was 10-20 years ago) it's for the upper-middle class.

Every application has a disclosure statement, that needs to be signed by the applicant that asks if you can afford future rate increases? Like any other product, buyer beware.