Ask Terry Questions Long Term Care Insurance premiums

Long Term Care Insurance premiums

By Terry Savage on July 14, 2019 | Insurance & Annuities

Hi Terry—I know you are strongly in favor of long term care insurance. I had a disappointing experience and wonder if you’ve heard of this. In 1999 I bought a policy and paid monthly, but the premiums went way up over the years, and I reduced benefits several times to keep it affordable. Finally I canceled, and now the amount I paid in will be available for covered services. It’s not enough for nursing home care, but hopefully I can use it for in-home care when the time comes. Bad experience?

Terry Says

No, typical experience.  The companies underpriced the policies they sold 20 years ago — and unless it was a fully paid up policy, all premiums have increased dramatically.  I wish you had continued to pay a lower premium and kept at least some of the benefits in force. That’s what I always advise.  Otherwise the company has made a lot of money off you — using your money for all those years!

These days, I advise purchasing a combination life/LTC policy — so premiums can’t go up.  That’s the subject of an upcoming column.  I’m sorry for your experience — and for what happened to all those trusting buyers who never dreamed of such price increases. It happened with one of my own policies (the other was a 10 pay policy that was paid up years ago).  You’re definitely not alone!



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