Long Term Care Insurance Premium Hikes

[npalen]

The annual premiums for my wife and I have doubled in the fifteen years since we bought into long term care insurance. The recent hike puts the combined annual premium at about five thousand dollars with us both in the mid seventies.

They say to buy this type of insurance when you're young but does that save in premiums as you're paying over more years? Wondering what others have experienced with rate increases in recent years?

 

[jeff9366]

I suggest calling your current long term insurance provider and asking for a quote as a new customer in your mid-70s. I will be surprised if it is not at least double, possibly treble your current rate, if they will accept you and your spouse.

Personally, I have invested in Vanguard's Health Care Mutual Fund for forty years, to fund long term care needs as they arise. I figured I would have more control. I am your age.

 

[KennyG]

I haven't looked at long term care recently, but I once asked an insurance agent about it and, believe it or not, he recommended against it. Part of the issue was that I would have resources for long term care, but the real issue was, at that time, the length of time the policies would cover care was limited.

When you need long term care, most of your other expenses go away. You don't need a house, a car, vacations, etc. Absent those expenses, if you can't afford long term (not medical) care, the government will probably take care of you.

 

[ultrarunner]

Policies vary...

Very good friend of my parents did all the right things and then COVID hit.

His policy only pays in a facility which fine until lockdown...

His daughter is a licensed physical therapist was barred from entering... her dad just sat in his room every waking hour asking for her as he declined...

She had to take legal action just to provide physical therapy 30 minutes a day...

Facility would call police when she refused to leave after entry denied.

The plan her father counted on paid nothing outside a facility making for a most difficult year... As daughter could not afford in home care out of pocket...

It was common for seniors in facilities to feel abandoned and stop eating etc... especially those unable to understand it all...

 

[npalen]

I haven't looked at long term care recently, but I once asked an insurance agent about it and, believe it or not, he recommended against it. Part of the issue was that I would have resources for long term care, but the real issue was, at that time, the length of time the policies would cover care was limited.

When you need long term care, most of your other expenses go away. You don't need a house, a car, vacations, etc. Absent those expenses, if you can't afford long term (not medical) care, the government will probably take care of you.

I would venture to say that the spouse still needs somewhere to live and will continue to have the usual expenses.
Yes, the government will probably take care of you, but where, perhaps at a substandard facility?

Average Cost of Long-Term Care Insurance (2024) | ConsumerAffairs®

From $900 to $1,700 for men and $1,500 to $2,700 for women

www.consumeraffairs.com

 

[Jimmy Joe]

I was confused when we were shopping as they said rate was not guaranteed and is seemed like they could drop you if they wanted was over 4000 per year for me i was in my late 50's at the time.

 

[NoTrespassing]

I'm surprised they aren't higher. A lot of nurses are getting paid over 100$ per hour now. How is insurance going to to cover those costs?

 

[npalen]

I'm surprised they aren't higher. A lot of nurses are getting paid over 100$ per hour now. How is insurance going to to cover those costs?

A lot of nurses are getting paid over 100$ per hour now.

Sounds like an awful lot! Can you substantiate that?

 

[NoTrespassing]

Our secretary's RN daughter just started a contract for $111 per hour plus insurance. She drives 50 miles one way and is home every evening. My neighbor and good friend who has her doctorate in nursing knows several women that are traveling contract nurses making over 200K.

 

[npalen]

Our secretary's RN daughter just started a contract for $111 per hour plus insurance. She drives 50 miles one way and is home every evening. My neighbor and good friend who has her doctorate in nursing knows several women that are traveling contract nurses making over 200K.

I have heard that the traveling contract nurses make much more than their colleagues. It doesn't make sense to me but I'm sure there must be some logic to it.