Hi,
Just a data point I thought I would share with everyone. I'm a long-term lurker and infrequent poster, but have gained a wealth of knowledge from this board.
I received a notice from NY Life that my LTC policy is having an increase in premium. It will be the second increase since I've bought the policy, but it will be the last. As part of the increase, they are making adding language that the premium will never increase again on my policy, assuming I make no changes to the policy (decrease elimination period, add riders, etc....) They are also making is guaranteed renewable and non-cancelable.
I've mentioned in other posts that LTC insurance was something my spouse insisted we purchase. She had a bad experience caring for family members and never wants to place others in a similar position. I've had mine 11 years and purchased it when I was 25.
Current policy is as follows:
Issue state: Missouri
$252/day benefit (Original was $150.)
5% compounded inflation benefit
Unlimited benefit period
180 day elimination
$1348 annual premium. (Original was around $900)
Keep everything the same, the premium will increase to $2425 per year.
Reduce daily benefit to $145/day and the premium will stay $1348.
$252 daily benefit, but reduce benefit term to 3 years: $1298
I've emailed our agent to see if the reduction in daily benefit cancels the 5% inflation rider. If it does not, I'm probably going to take the offer to reduce the benefit to $145. If I make it to 70 (34 years), that will get me $760 daily benefit. If it does remove the 5% inflation rider, then I'll have to reevaluate. My company currently pays my policy, but I am struggling to find the value in keeping the same benefits at twice the cost, especially if I keep the 5% inflation rider.
I have not read any industry publications and my friends in the business have not heard if NY Life or other companies are going to start offering fixed premiums on new policies. If they do, I'm sure the premium will be high enough to price the people who need it most out of the market.
Just a data point I thought I would share with everyone. I'm a long-term lurker and infrequent poster, but have gained a wealth of knowledge from this board.
I received a notice from NY Life that my LTC policy is having an increase in premium. It will be the second increase since I've bought the policy, but it will be the last. As part of the increase, they are making adding language that the premium will never increase again on my policy, assuming I make no changes to the policy (decrease elimination period, add riders, etc....) They are also making is guaranteed renewable and non-cancelable.
I've mentioned in other posts that LTC insurance was something my spouse insisted we purchase. She had a bad experience caring for family members and never wants to place others in a similar position. I've had mine 11 years and purchased it when I was 25.
Current policy is as follows:
Issue state: Missouri
$252/day benefit (Original was $150.)
5% compounded inflation benefit
Unlimited benefit period
180 day elimination
$1348 annual premium. (Original was around $900)
Keep everything the same, the premium will increase to $2425 per year.
Reduce daily benefit to $145/day and the premium will stay $1348.
$252 daily benefit, but reduce benefit term to 3 years: $1298
I've emailed our agent to see if the reduction in daily benefit cancels the 5% inflation rider. If it does not, I'm probably going to take the offer to reduce the benefit to $145. If I make it to 70 (34 years), that will get me $760 daily benefit. If it does remove the 5% inflation rider, then I'll have to reevaluate. My company currently pays my policy, but I am struggling to find the value in keeping the same benefits at twice the cost, especially if I keep the 5% inflation rider.
I have not read any industry publications and my friends in the business have not heard if NY Life or other companies are going to start offering fixed premiums on new policies. If they do, I'm sure the premium will be high enough to price the people who need it most out of the market.