Regular LTC policies without rate increases?

Aug 22, 2018

  1. JJ2713
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    JJ2713 Super Genius

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    Are there any regular LTC policies (not hybrids) that don't have any rate increases?

    As in, it's actually put into the contract that the rates are fixed and will never go up?
     
    JJ2713, Aug 22, 2018
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  2. ltcadviser
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    Yes, National Guardian Life single pay.
     
  3. rousemark
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    rousemark Still Here!

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    Noncancellable plans seem to have disappeared from almost every health insurance line.
     
  4. ltcadviser
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    Not disability insurance.
     
  5. Mr_Ed
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    Mr_Ed Guru

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    You might want to spend a little time to learn about the Rate Stability Regulations now in effect in 41 states.

    long term care insurance rate increases
     
    Mr_Ed, Aug 22, 2018
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  6. ltcadviser
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    Yesterday, I received a notice that 2 policies I sold in Florida in January 2013 will now be increased by 98%! This 98% increase will be implemented on my clients over the next 3 years. So, Scott....your link above says that Florida enacted rate stability regulations in 2003? What happened? Did Florida forget?
     
  7. JJ2713
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    JJ2713 Super Genius

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    That's appalling and just outright insulting to the policy holder.

    An attorney could make the case for fraud or "bait and switch".

    They show a fake teaser rate and then hit them with the real rate later after years of premiums.

    It's almost like the insurance company is baiting the client to just cancel the policy or the client pays the higher premiums - the insurance company wins either way.

    What will your client's do? Simply pay the higher premiums? Or cancel and you'll help them get a "hybrid" policy to not have rate increases?
     
    JJ2713, Sep 5, 2018
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  8. ltcadviser
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    I am not sure what they will do, but I know I certainly can not defend an increase of 98% after 5 years!
     
  9. fed up
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    Who is the carrier? Were their policies bought by another company? Was the entire class given notice of a 98% increase? that sounds very high for a 5 year old policy unless there was a major change in the coverage.
     
    fed up, Sep 5, 2018
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  10. ltcadviser
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    Genworth
     
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