Quote:
Originally Posted by NJblue
For those who have LTC insurance, what safeguards are there that the premiums won't rise to the point that they are unaffordable or at least so high that had you known that they would have become so high you never would have purchased the policy? My fear with policies of this sort is that you could pay the premiums for 20 years without missing a single one, but at some point the premiums may become so high that you decide to give it up - and watch all of your premiums paid go down the drain. The insurance companies know that you are loathe to watch this happen and hence are fairly free to raise your rate to whatever they want and the captive market will have little recourse but to pay up.
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They'd be slitting their own throats, wouldn't they? Sure, they make a profit from current policyholders but they make the big bucks from selling lots and lots of future policies for a long time. If they raise premiums to the unaffordable level, that would pretty much close the doors, wouldn't it? Where's their future?