With Premiums Rising Dramatically, Should You Keep Your Long-Term Care Insurance?

But what if you’ve already purchased long-term care insurance, and you’ve seen your premiums rise sharply in recent years? If this is your situation, you’re not alone. Many policyholders have experienced premium increases of 40% to 60% in recent years. The reason behind these hikes is that many insurance companies suffered significant losses on policies written over a decade ago as well as rising health care costs and now they’re attempting to recover by raising premiums. In fact, some companies have even stopped offering long-term care insurance altogether.

So, if your premiums have gone up, what should you do? Should you keep the policy, adjust it, or look for a more economical alternative? Here are some important factors to consider:

• Age of Your Policy: If your policy is more than two years old, it’s likely you won’t find a cheaper option to replace it if you decide to cancel. Also, qualifying for a new policy might be more difficult now, especially if your health has changed.
• Premium Increases: If your premiums have risen by more than 20%, you could consider reducing your daily benefit to bring the costs back down. Lowering the coverage might help you manage the increased costs while still maintaining some level of protection.
• Inflation Protection: Another way to reduce premiums is by lowering the inflation protection on your policy. However, be cautious with this option and ensure that any changes are not applied retroactively. Reducing inflation protection might save you money now, but it could impact the value of your policy down the road.

Since every family’s situation is unique, it’s always a good idea to discuss these matters with an experienced elder law attorney. We can help you review your current policy and determine if it’s in your best interest to keep it or make adjustments. Additionally, we can recommend other strategies to help protect your assets while ensuring you receive the care you need.

If you’d like personalized advice or have concerns about your long-term care planning, feel free to contact us for a consultation. We’re here to help you navigate these important decisions with confidence.

At Haimo Law, we pride ourselves on our holistic approach to representation, which sets us apart. First, we build personal relationships with our clients, taking the time to understand them on a deeper level. Second, we collaborate with other professionals, such as CPAs, financial advisors, realtors, other attorneys and more, to achieve our clients’ goals. We view planning as a team effort. Third, we consider our client’s emotional, mental, familial, and spiritual needs, recognizing that various circumstances and factors influence their behavior, with legal matters being just one aspect. Our distinctive and refreshing approach ensures that we consider all these elements in every client engagement. Offices in Fort Lauderdale, Florida and Port Jefferson, New York.

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