/ Ask Terry Questions / Long Term Care Insurance

Long Term Care Insurance

By Terry Savage on January 08, 2023 | Insurance & Annuities

A little over 4 years ago my husband and I purchased long term care insurance through a group plan offered by my employer. The long term care insurance is offered through Unum. The plan includes set monthly amounts for a care facility, assisted living and home care. We also chose compound inflation protection. We have been paying $1,068 quarterly for premiums for a total of $4,272 annually.

We recently received a notice that the policy premium would increase by 151% beginning Jan 1 2023, over the next 3 years, with each increase being compounded the previous increase. This would result in premiums of almost $10,000 per year two years from now. This seems like a poor investment and we are seeking advice on where to go with this financial issue.

We do have choices to decrease the premiums by dropping the inflation protection going forward or decreasing the payments/terms of the benefits. I’m also wondering if we should drop the policy, maintain our non-forfeiture benefit of @ $17,000, and move forward by trying to “self-insure”. Unum seems to have a reputation for refusing to pay claims, and their rating of “A” is acceptable but not stellar. Do you have any advice or can you refer us to an unbiased long term care insurance specialist who we could contract for counsel?

Thank You,

Terry Says

Yes, let me refer you to my LTCI expert Brian Gordon of Gordon Associates in Northfield. His phone is 800-533-6242. You are not alone in finding huge premium increases in traditional LTC policies. You may be better off choosing a “combo” life and LTC policy. If you don’t use it your heirs get a death benefit. And premiums can’t rise because the policy is funded with a one-time or series of lump sum deposits.
I wrote about this kind of policy last summer. Please read this article before calling so you understand the basics.


You can 100% trust Brian to lead you in the right direction. Use my name, or not — as I get nothing out of this except the good feeling that comes from knowing I have placed you with someone you can trust.



a personal
finance question