[jblum315]

Jphn Hancock has just doubled the premium on my long-term care policy. I really don't know what to do.

[Bonnevie]

this is why I'm so hesitant to buy it. have heard many people who pay for years then the rates get jacked up and they are stuck....all the financial people recommend it but I worry about this and also will the companies pay out when we all start needing it?

[Bizdoc]

When companies decided that LTC was going to make them lots and lots of money, they rushed in without thinking thru what was going to happen. Most bet that they would have experience (their term for claims and the like) similar to life insurance - many folks would stop paying and drop their insurance and folks would die without making a claim.

What they found was that many people who bought LTC coverage were older (duh! like that should have been a surprise) and thus had made an informed choice to get and keep the insurance. Then the claims started to come in (on the heels of the financial crisis no less) and they were paying out money at a furious rate. They were not happy.

Most companies stopped writing new policies. Most started to try to find ways to change how much they charged. The problem was that they were usually locked into the rate structure either forever or for long periods of time. Many went crying to state insurance regulators who were sometime sympathetic and sometimes told them that they had to stick with the policy they had written.

A lot of the current increases (last 5 years or so) are the result of the long periods of time that their policies specified before they could raise the rates ("And you can't be hit with a rate increase during the lifetime of my dog Spot!"). So... the rates are going up.

If you call and complain, they may offer you amended terms like smaller increase in exchange for a reduced cost of living clause or reduced coverage.

You can try complaining to the state insurance commissioner (here or in the state where you bought the policy. It may or may not help, but at least you can get some theraputic venting done.

Be very very careful about asking an insurance agent for advice (Would you really ask a car salesman if you should buy a new car?). More than likely, they will suggest that you change to a policy they happen to have. More than likely that policy will restart the clock at zero for any waiting period for claims (often 3 years or more) and you will really have a problem if you need it before then.

[justjim]

Each person's situation can be different as none of us know what our health may be in the future or how long we are going to live. We decided a long time ago against a long-term care policy for many of the reasons others have mentioned. The insurance companies are not in the business to lose money----surprise!

The fact is if you live long enough needing constant care you will be "broke" when you pass. Enjoy now----give what extra money you have now to the kids, if you have children or grandchildren , and spend what you want to on yourselves. Anyway, helping the kids now could be the best thing for you and them.

Life isn't permanent and we shouldn't live as if it is.

[Bonnevie]

I was discussing this with another Villager who has the option of buying thru her former employer's group policy and she said upon reading the policy, alzheimers was only covered if there was a physical problem associated with it requiring care.....so it's important to see what exactly is covered. I don't trust insurance companies...it's not like they like to pay out.

[Bizdoc]

Alternately, hire a good elder law attorney and listen to what they tell you about how to structure your assets so that you can qualify for Medicaid and/or VA aid and comfort. You would be amazed at the politicians who like to talk about "the takers" who make certain their loved ones can get Medicaid.

[jblum315]

I spoke to my financial adviser and he thinks the best option would be to reduce the inflation factor from 5% to 3.4%. The other options offered by Hancock were to reduce the daily benefit or to extend the elimination period. Then I called Hancock and they said if I reduced the inflation there would be no increase in the premium. So I think that's what I'm going to do. Of course I know there will be another premium increase in the future but I'll worry about that when I come to it.

[slipcovers]

Originally Posted by Bizdoc

Alternately, hire a good elder law attorney and listen to what they tell you about how to structure your assets so that you can qualify for Medicaid and/or VA aid and comfort. You would be amazed at the politicians who like to talk about "the takers" who make certain their loved ones can get Medicaid.

You are saying to sign and give your assets to your children and go on WELFARE, yes, Medicaid is welfare. We know of a couple who had a 2 story colonial home on Cape Cod, 2 condos on Clearwater Beach. They signed everything to a Trust, giving everything to children. He will soon need nursing home care and guess who is stuck with the bill? Taxpayers, how fair is that?

[tanbcu]

Originally Posted by jblum315

Jphn Hancock has just doubled the premium on my long-term care policy. I really don't know what to do.

no need of it in florida. see an attorney .

[RErmer]

Originally Posted by Bizdoc

When companies decided that LTC was going to make them lots and lots of money, they rushed in without thinking thru what was going to happen. Most bet that they would have experience (their term for claims and the like) similar to life insurance - many folks would stop paying and drop their insurance and folks would die without making a claim.

What they found was that many people who bought LTC coverage were older (duh! like that should have been a surprise) and thus had made an informed choice to get and keep the insurance. Then the claims started to come in (on the heels of the financial crisis no less) and they were paying out money at a furious rate. They were not happy.

Most companies stopped writing new policies. Most started to try to find ways to change how much they charged. The problem was that they were usually locked into the rate structure either forever or for long periods of time. Many went crying to state insurance regulators who were sometime sympathetic and sometimes told them that they had to stick with the policy they had written.

A lot of the current increases (last 5 years or so) are the result of the long periods of time that their policies specified before they could raise the rates ("And you can't be hit with a rate increase during the lifetime of my dog Spot!"). So... the rates are going up.

If you call and complain, they may offer you amended terms like smaller increase in exchange for a reduced cost of living clause or reduced coverage.

You can try complaining to the state insurance commissioner (here or in the state where you bought the policy. It may or may not help, but at least you can get some theraputic venting done.

Be very very careful about asking an insurance agent for advice (Would you really ask a car salesman if you should buy a new car?). More than likely, they will suggest that you change to a policy they happen to have. More than likely that policy will restart the clock at zero for any waiting period for claims (often 3 years or more) and you will really have a problem if you need it before then.

Excellent explanation of what happened!

[Vic&Judy]

Originally Posted by tanbcu

no need of it in florida. see an attorney .

Tanbcu,
Can you explain further??