“The Long-Term-Care Insurance Dilemma,” by Kimberly Lankford, Kiplinger’s Personal Finance

Quote:

“One of the most effective ways to protect your retirement savings from the high price of assisted living, in-home care or a stay in a nursing home is a long-term-care insurance policy. But recent premium hikes have many baby boomers worried that coverage is no longer affordable.

“Don’t drop your policy if you’re faced with an increase; new coverage will cost a lot more. Although Ashley’s annual premiums increased by more than 75%, he’s 19 years older and his daily benefit has grown by 5% a year. A new policy for a 71-year-old with similar features and coverage would cost at least $9,000 a year. If you can’t afford the higher premiums, your insurer will generally give you several options. For example, you may be able to minimize the rate increase if you cut future inflation protection from 5% to 2.5% or 3%, says Claude Thau, an insurance consultant in Overland Park, Kan.”

LTC Comment (from Damon V Moses, Administrative Coordinator, Center for Long-Term Care Reform):  This article offers level perspective and responsible advice regarding the LTCi dilemma.

The Long-Term-Care Insurance Dilemma

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