Sunday, August 17, 2008

Long Term Care insurance premiums are rising with at least two insurers


John Hancock Life Insurance is planning to raise premiums on some long term care insurance policies (link for LTC products), especially those from the 1990s, and some partnership policies with New York State. John Hancock works closely with ING and other large employers. This increase is said to be John Hancock's first ever. Recently, a competitor, Genworth (which works with the AARP) announced that rates could increase 8 to 12 percent for 440000 policyholders. Genworth's LTC link is here.

Financial planners have expected companies to raise rates because of demographics and actuarial experience. They generally advise holding on to policies anyway, put possibly increasing “deductible” or length of “self-pay” periods, or increase the threshold number of conditions that qualify for care with some kinds of policies (from 2 to 3).

The Washington Post story, in the Sunday August 17 paper, on p. F3 of the business section, is authored by Kimberly Kankford, is titled “Long Term Care Rates Set to Increase” and has this URL. Apparently the story originated with Kiplinger Personal Finance.

1 comment:

Toronto life insurance broker said...

Yes, sometimes I am wondering, why no massive wave of price rising still has not begun. I have been selling disability insurance in Toronto for many years and the growth of demand is significant, the same with long term care policies. I really wonder, what will happen in ca. 10 years, when babyboomers turn to "retirementboomers" and number of policy claims (especially long term care) will jump. Not to say we can expect huge price rise of nursing homes and daily care homes. There is still time to react, I think we should wake up!
Take care
Lorne