Many people who have (or had) long-term care insurance experienced skyrocketing rate increases. Sometimes they even had to drop the policy because it became too expensive to keep. Fortunately there newer types of policies that the insurance company guarantees will never have rate increases, as explained by Greensboro elder law attorney Dennis Toman.
One of the ways of paying for long term care is to have long-term care insurance. For traditional types of long term care insurance, frankly many of my clients who consider that decided against it primarily because there’s no guarantee that the premiums won’t increase.
Many times, I’ll talk with families and ask them do they have long term care insurance and they’ll say, well yes, we had long-term care insurance, but we got rate increase after rate increase until it got so expensive we couldn’t keep it.
Fortunately, there are some newer types of long-term care coverages that are asset based, that are either life insurance based or annuity based. And with these policies, the premiums are guaranteed to never increase.
This is certainly something that with the right type of policy would be worth considering for long-term care coverage, especially if one of your goals is to remain at home if you need future care.
So if the question is “Should I get long term care insurance?” My answer is it’s good to look at and there are some types of long-term care insurance that are better than others. Make sure that you’re working with someone who understands the difference and why it’s so important to have the right policy to protect yourself and your family.