As Cost Rises–Try and Keep Long Term Care Policy

For the past few years I’d been receiving an annual increase in the cost of my Long Term Care insurance policy.

The company didn’t fail me this year. I was just informed my LTC policy rate of $2,477.77 is increasing to $3,097.21 this year to cover $150 a day n a nursing home (or some at-home care costs) for six years.

After seeing that, I again gave thanks for having been smart enough to buy this policy 25 years ago!

I saw a story about it in Modern Healthcare Magazine while working as an editor for its publisher, Crain Communications Corp.

I told everyone I knew about it (including my insurance agent) and we all bought them before our 65th birthdays—which are when the purchase price would have gone up.

My husband and I were each insured for about $1,000 a year. Gradually, the annual cost rose, but benefits remained the same.

By last year I paid $2,477.77 . This year the raise , in accordance with state laws for LTC policies, was 25% and I will pay $3,0997.21. It also offered several options for changing the policy to decrease the cost.

Everyone at my book club who has a LTC policy was aflutter about which options to choose. Most had purchased the policies later and were already paying much more than I am.

Some changed the time of care from unlimited to five or six years. Others, whose annual fee was more than $12,000, simply stopped paying and let their accumulated pre-paid fees absorb the new annual fee until there is nothing left in the policy. (Does that mean you hope to die sooner?)

There were other options and my first thought was to run it all past my financial professionals to see what they thought.

Then I realized that since nursing home care can run bout $10,000 a month —that $3,097.21 a year policy is a great value. I am changing nothing this time.

Did you get such a letter? What are you going to do