rovand
New Member
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While we can all agree it's not the best time in LTCI's history, a little perspective is very helpful. Case in point - this recent article in Forbes.
LTCI Has Challenges, but...
- Thread starter rovand
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Please don't speak for me.
What I believe I have been told is that current LTCi products are priced more realistically than older ones in relation to the risks which insurance carriers believe they face with this coverage. I also believe I have been told that there are caps or controls (not sure which) on premium increases which may be presented to the consumers.
If those things are true, how is this a worse time in LTCi's history than older times? If those things are not true, what is the correct information?
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rovand
New Member
- 11
LostDollar - there is, to me, a "hangover effect" in the LTCI industry. That is, I concur, current pricing on LTCI is at levels it arguably should have been had the industry known of, in particular, the lapse rate and interest rate effects that have led to the increases (in new business and existing blocks). The November 2016 Society of Actuaries Pricing Study bears that out. However, the rate increases that have been sought, and granted, in the recent past (as a result of those economic factors) have left many consumers - and many advisors - with the opinion that, what goes up, must continue to go up. I believe we will reach a point where consumers and advisors will realize there is some light at the end of the tunnel. I'm just not sure we're there yet. Balanced articles like the Forbes article will help get us there. Best - BV
This Forbes article left out the most important point: The Rate Stability Regulation.
long term care insurance rate increases
- 6,455
I am not an insurance agent or professional-in any area of insurance. But from reading in this forum, it seems to me that your comments are way off the mark.
One of the links mred posted indicates that there was a significant change in LTCi pricing in 2015. This would seem to make two subpopulations in the group of LTCi policy holders. Your posts seem to me to be backward looking, saying that the premium situation of pre 2015 policy holders really sucks, so the LTCi market is in worse shape now than it was x years ago; or you are saying that LTCi policy holders are no longer able to purchase policies which are economically unsustainable in the long run, so the market is in worse shape now, not sure which.
Contrary to that are lots of threads here containing posts by LTCi professionals talking about the saleability and viability of current LTCi products. As a consumer I have been made aware of ways in which the interests of states and insurance companies have come together to create new LTCi products to make that type of insurance more useful and more affordable for consumers; ie I believe professionals and consumers already see the changes in this marketplace.
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I think it depends on worse for who. Consumers, past or present. Agents selling traditional versus those that sell Hybrid. There is also a segment of consumers that doesn't want Hybrid plans.
So I think more of a definition of who we are referring to.
I found this interesting from the article:
However, the reality is that the premiums are increasing because the policy was actually too good of a deal in the first place, considering the price that people paid in. If your premiums increased, you didn’t make a bad decision about getting long-term care insurance; you actually made a good decision because you got an important protection at a bargain price. That being said, you still need to be able to continue to afford the insurance in the future.
It is not the best time in health insurance history, either. My health insurance premium is now $2400 monthly. I remember when it used to be $700 month.
Yes, long term care insurance costs much more today than it used to cost. Well, so does my health insurance.
If you want LTCi or health insurance benefits today, you have to write a check. There is no free lunch here. 1999-2010 pricing for health insurance products is not walking through the door again.
You don’t want to write a check for the insurance premium, fine. You can self-fund out of your assets and income.
Just like if I do not want to write my $2400 monthly health insurance premium I can forego the Cardiologist at Emory St. Josephs and show up at Grady Hospital instead for the medicaid treatment.
Everyone is free to make their best choices.
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