If you recently expressed an interest in Long Term Care insurance, itís important you are aware many of the leading carriers of long term care insurance are in the process of redesigning their products and will shortly be coming out with similar products at increased premiums. If you are seriously considering this protection, it would be in your best interest to purchase coverage now.

Several factors contribute to this movement.  One is the recent finding that unlike other types of insurance protection, Long Term Care policyholders do not let their policies lapse.  The process of purchasing this insurance generally includes a lot or research and a labored weighing of alternatives and options. People tend to do it carefully as they wend their way through a myriad of choices in carriers, products and benefits . It is always essential that the buyer purchase what he or she can afford and question if it realistically accomplishes their goals.  Recognizing the protection Long Term Care Insurance will afford, few allow their policies to lapse.

The current issue is, that based on history with other types of insurance products, actuaries have actually built into the rates the factor that a percentage of people will drop their policies after a few years. This is not happening, so premiums must rise to prepare for larger reserves to be there for a larger group of people going on claim than initially projected.

Simultaneously, the National Association of Insurance Commissions, based on numerous studies, has published new model regulations that include recommendations for the pricing of initial premiums and premium increases.  A Guidance Manual for state regulators is also now available.

While a few smaller carriers have under priced their products and had to resort to premium hikes, most of the major companies have kept their prices stable for the past ten years.  The common practice is to retain premiums for current policyholders and come out with new, more expensive, enhanced products for new customers. While I cannot offer a guarantee of no increased prices over time, I do see the products currently on the market  as an excellent value.

In conclusion, if you are considering the purchase of Long Term Care Insurance, I suggest that you do so now while this opportunity exists.

If you have any questions, as always I am available to you. You can email me at ltcameric@aol.com or call me at 631.393.5039. Enjoy the warming weather!


Jerie Charnow, MSW