The Cost of Long Term Care Insurance Is Up But Varies Widely

Long term care insurance premiums are up by 9% this year according to the latest report.  Premiums vary greatly depending on several factors. According to Jesse Slome, increase in policies is much larger for some people while it is quite modest for couples. 

Couples get a discount if they buy a joint policy since one of them will most likely provide care for a spouse. So a married couple will now pay $3,930, up from $3,280 for the initial coverage of $328,000.

A man who is 55 years old will expect to pay the average cost of $2,075 annually for the initial coverage of $164,000, which is up from $1,765 last year.

The rate for a single woman of the same age is higher. Her average rate is $2,411 which is up from $2,307. The reason behind this is gender-based pricing since women outlive men and will most likely require long term care.

Source: http://www.nytimes.com/2015/02/21/your-money/long-term-care-insurance-costs-are-up-but-vary-widely.html?_r=0

Facts about Long Term Care Insurance

Long-term care insurance gives people the peace of mind and protection. It helps pay for long term care facilities such as assisted living facilities, nursing homes, CCRCs, home care and adult day care. However, there are some policyholders who are worried about the huge increase in premiums. It was reported this week that Genworth Financial has a $844 million quarterly loss. This only increases the risk of another rate increase, which is the concern of many policyholders nowadays.

For your guidance, here are three takeaways for long term care insurance policyholders:

1. A past rate increase doesn't forestall additional hikes down the road.
2. Switching insurance companies is not advisable.
3. It's possible to get good coverage by decreasing your benefits.

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Reblogged: Genetics can Affect Long-Term Care Insurance Cost

Genworth is the only long-term care insurance company that considers medical histories of parents as basis for their rates. According to Jesse Slome, the executive director of AALTCI or American Association for Long-Term Care Insurance said that "Insurers are absolutely scrutinizing health conditions more, because they are paying a lot of money in claims." This is common in life insurance but this is a first in the long-term care industry. As of now, Genworth is the only carrier that considers family history as basis for the cost of long term care insurance. 

Original Source: http://www.mainstreet.com/article/genetics-could-spike-the-cost-of-long-term-care-insurance/page/3

Reblogged: Long-Term Care Insurance Cost is on the Rise

Long-term care insurance is describe as an insurance product that provides coverage for long-term care services that are beyond the scope of health insurance. Opting to pay out-of-the-pocket will most likely drain your nest egg since the cost of care is skyrocketing nowadays. For example, the median cost of nursing home in New Jersey is around $109,000 annually. It costs a lot, thus the need for coverage. However, it is not for everyone. It pays to determine your needs first whether you will greatly benefit from this or alternative payment methods are enough to pay for your long-term care expenses.

Those who have already purchased coverage and experienced a premium increase should evaluate their options first and make an informed decision before making a decision. You can still continue paying your premiums if you can afford it or you can reduce your benefits in order to offset the increase in cost of long term care insurance. It’s best to seek the help of a long-term care insurance specialist and discuss your options in order to make a sound decision. Visit this website to learn about the real cost of coverage.

Original Source: http://www.northjersey.com/news/health-news/did-your-long-term-care-insurance-premium-recently-increase-1.1078938