Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
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John Hancock LTC premium increase
Has anyone gone through this with a Long Term Care premium increase?
Our policy is just four years old. The premium is jumping by 44%, to keep the same coverage. They are offering a deal to keep the premium the same but reduce the inflation factor from 5% to 3%. I know that we can't predict the future, but inflation seems to be the worst in the health care field. |
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#2
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Welcome to life in the world of LTC. Most policies reserve the right to raise premiums whenever -- and they do. Increases seem to come higher and faster the older you get until premiums are so high you have to drop coverage about the time you statistically really need the benefits.
I don't have any suggestion for a solution, except carefully read the policy before signing up. Put little faith in what the sales person tells you. Most do not extensively discuss certain "key" facts or what realistic projections of premiums or medical cost increases will be. Years ago some of the reputable large firms issued fixed or limited premium policies but found that they were losing bigtime on the benefits payouts, and to my knowledge stopped writing these types of policies.
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All of us could take a lesson from the weather. It pays no attention to criticism. |
#3
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Sucks! I have a NYS partnership policy with Hancock. I went with them because they had a track record and never raised rates. They have to get approval for rate changes and can only do it for an entire class (not sure how a class is defined). I saw that Hancock had applied a couple of years ago and I've been watching for it. Mine didn't change last November, I was hoping I wasn't in the class.
This is the first I've heard of the alternative to reduce the COLA percentage. In fairness, that may be reasonable since 5%/yr is a little stiff in today's environment. I'll probably have to do that. I have one of the original Partnership plans that protects 100% assets after 3 years. So, worst case, I'd have to pay a bit more out-of-pocket if I used it. Still, it's aggravating that "legal agreements" are always so one-sided. It's like the fine print changes I get from the banks and credit card companies all the time. Those contracts you originally agreed to mean you follow the rules and they do whatever the please. |
#4
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I've had my John Hancock LTC policy since 2001. First increase was in 2009 at 18%. Just received my increase the other day of 57.65% with the same option of decreasing my yearly inflation of 5% to 3.2% with no increase in premium. I guess I will opt for that but what's to stop them from increasing me again next year, resulting in my throwing away another year's premium. I am afraid at some point, I may have to cancel. Would hate to do that since I've had it so long.
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The Villages (Polo Ridge; Piedmont), Toms River, Brick, Spring Lake Heights, NJ and Bronx, NY |
#5
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#6
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Well, I just received notice that my premiums will increase 72%. They give options of reducing the inflation factor from 5% to 3%, reducing the daily benefit amount, reducing the benefit period, or increasing the elimination period. Bottom line, pay more for what I signed up for in 2002 at age or keep my current premium amount for less benefits. It's a lose/lose proposition. Guaranteed renewable for life - if one can afford it.
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#7
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I saw this coming 20+ years ago. I was in the insurance industry and watched the LTC issue with great interest. The problem is that the industry started selling LTC widely in the mid to late 80s, with no track record on which to base the premiums. Many companies priced their policies low in order to get business on the books, knowing full well they had provisions in their policies to raise premiums if the reserves were found to be lacking. Well now with many years of tracking experience they are undoubtably finding their original assumptions to be too low, and so are raising premiums. The problem with lowering your COL adjustment is that long term care prices are rising at a greater rate than general inflation, just like all healthcare costs. There should be some protection for long time policy owners, but in most cases there is little recourse - pay the higher premium or lose the coverage you have paid for for many years.
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Oldcoach Ed "You cannot direct the wind, but you can adjust the sails" "Be yourself - everyone else is taken" |
#8
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I am so glad I'm reading all this as I've considered getting this insurance. I am now wondering if I should bother. If the companies are acting like this now, one wonders how honorable they will be about paying out when the time comes.
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#9
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COL per month for myself and spouse: $5,000 COL per month for spouse alone: $3,500 Resources if in nursing home after spouses COL: $3,000 (includes SS, pension, and 401(k) or annuity Cost of AAA nursing home per mo. $4,500 Coverage for the difference in LTC: $1,500 per mo. benefit + COLI
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Oldcoach Ed "You cannot direct the wind, but you can adjust the sails" "Be yourself - everyone else is taken" |
#10
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"Cost of AAA nursing home per mo. $4,500"
Kindly explain where you got this figure from... Is this the cost of being at the new facility on 466A? |
#11
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The average annual rate of a private room in nursing homes in Florida now costs $82,125 while a semi-private room is about $74,825 according to this website:
Florida Long Term Care Insurance Costs, Information, Partnership Policies and Quotes for Miami, West Palm Beach, Tampa, Jacksonville & More That is much more than the $54,000 you are considering ($4,500 per month). And, it seems other COL expenses should be added in. What is scary is that there are little, if any, COL increases from social security or pensions to offset. |
#12
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That facility is not a nursing home.
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. . .there is nothing better for people than to be happy and to enjoy themselves, and also that everyone should eat and drink, and find enjoyment in all his toil. . . Ecclesiasites 3:12 |
#13
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Oldcoach Ed "You cannot direct the wind, but you can adjust the sails" "Be yourself - everyone else is taken" |
#14
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Just an example, you would need to do your own research on the cost of nursing home care in your area.
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Oldcoach Ed "You cannot direct the wind, but you can adjust the sails" "Be yourself - everyone else is taken" |
Closed Thread |
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