Why No One Can Afford Long-Term Care Insurance

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Why No One Can Afford Long-Term Care Insurance
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• Many long-term care insurance customers in
  Pennsylvania got a shock when their renewal
  notices arrived this year. Premiums were
  increasing by as much as 130 percent, and annual
  rates are on track to reportedly exceed 8,000
  for some policies.
• The increases have spurred outrage from
  policyholders and an inquiry by the Pennsylvania
  Insurance Department. Those familiar with the
  long-term care industry say the problem isn't
  isolated to Pennsylvania and dramatically
  increasing rates may be expected nationwide in
  the years to come.

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Factors pushing insurance rates higher.

• There are a number of factors contributing to the
  explosive growth in long-term care insurance
  premiums. "When long-term care insurance came
  out in the 80s and 90s, it was priced wrong,"
  says Larry Rosenthal, a certified financial
  planner and president of Rosenthal Wealth
  Management Group in Manassas, Virginia. Carriers
  assumed people would drop policies as they got
  older. However, that didn't happen in many cases.
  What's more, people are living longer and aren't
  necessarily living healthier. As a result,
  Rosenthal says many insurance companies have fled
  the market and those that remain have increased
  premiums significantly to keep up with costs.

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• Compounding the problem is the fact that many
  people wait too long before buying a policy. "No
  one buys it at a young enough age for it to be
  inexpensive," says Kevin Boyles,. The ideal time
  to start planning is between 52 and 64, according
  to the American Association of Long-insurance
  term. Those who wait longer face higher premiums
  and an increased possibility of being denied
  coverage.

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7 Alternate Ways to Pay for Long-Term Care

• People are often confused about how to pay for
  long-term care. "Resources they think exist don't
  exist," says Laura Troyani who founded the
  website PlanBeyond.com. Most notably, many
  seniors expect Medicare will cover costs when, in
  fact, the program does not pay for ongoing
  long-term care. While Medicare isn't an option,
  here are seven alternatives that are.

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Source http//money.usnews.com/money/personal-fin
ance/articles/2016-03-10/why-no-one-can-afford-lon
g-term-care-insurance-and-what-to-use-instead