Long-term care insurance choices can be complicated

Sometimes it comes down to premiums versus benefits

BY DAVID A. KUBIKIAN, ESQ.

Afew weeks ago, a client came into the office with a letter she received from her Long-Term Care Insurance carrier. The Client, who was in years previously, has maintained LTCI for almost two decades.

The letter advised her that there may be a significant (“up to 240%”) increase in her premiums in the coming years and provided her with two options. Each option contained a tradeoff. Lower or remove future premiums in return for my Client agreeing to reduce some of her benefits under the LTCI policy.

For many people with Long-Term Care Insurance, getting a letter regarding their future premium increases is nothing new. The companies from which they purchased the insurance, trying to combat the increase in the average life span and with it the need for long-term care coverage, are faced with existential circumstances. It makes sense. premiums in check. The most difficult part for clients is that if all goes well, policy owners will not need long-term care for a very long time or hopefully not at all. During the latter part of that time however, they are retired and living with a fixed income.

The math upon which many policies were priced out are now outdated thanks to the advances of modern science.