Long-Term Care Insurance Costs are Up – How Advisors can Help Clients Cope
Current Long-Term Care Insurance policyholders have likely seen a rise in their LTCI premiums over the last few years. Genworth Financial made headlines last year when they increased existing policy premiums by an average of 45%. The number of policies insurance companies are carrying and the status of the current market led to the hike in prices. However, while policyholders are understandably frustrated by this increase, CNBC warns people to not let their policies lapse.
While LTCI premiums have increased over the years, so too has the cost of the long-term care. In 2018, the median cost of home health care was just over $50,000, while the cost of a private room in a nursing home was just over $100,000. With these expenses only continuing to rise, it’s more important than ever that people maintain their LTCI policies.
Attorneys and advisors should encourage their clients to maintain perspective. Though premiums have increased, coverage is still affordable for most. If clients find themselves unable to afford the increase, they should explore adjusting their policy benefits and options (i.e., benefit period, daily benefit amount, elimination period, etc.) to achieve a less expensive premium payment.
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