Helping Your Client Navigate Long-Term Care Insurance Rate Increases By Maryglenn Boals You dread the phone call. You and your client are shocked by the numbers, but rate increases for traditional long-term care insurance premiums are quickly becoming the norm. Some carriers are announcing a one-time increase, but now we are seeing phased amounts over the next few years already projected for the client (should they choose to maintain their original benefits).
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AZ CPA JANUARY/FEBRUARY 2022
Rate increases are actually an opportunity for you and your client. For too long, LTC policies were placed in the back of someone’s file cabinet once they were purchased. The policy never saw daylight again until perhaps an adult child discovered it when the parent needed care. For many clients, talking about extended care needs is an uncomfortable conversation. They would rather see it as a transaction their financial advisor told them would protect their assets and family. Once it was secured, most don’t want to think about it. They set up auto payments and go back to living life. Transaction completed; uncomfortable thoughts packed away. Until that rate increase letter arrives in the mail ... What they don’t see is that a rate increase notice is a great time to review and rebalance their long-term care plan.
