i’ve paid into LTC insurance over 20 years. I am seeing increases every couple of years and have been given the option of suspending my payments and keep the amount of insurance I have accumulated at this time. I’m retired and concerned if I will be able to continue making the payments as the increases continue. I’m wondering would it be wise to suspend this insurance premiums keeping the amount I have accumulated, find additional LTC insurance at a lower rate provided the coverage is worth it, and have 2 LTC insurances, my initial insurance and a new insurance.
Frances, that’s a great question. I’m not an expert on LTC insurance, but I’m experiencing the same thing with my policy. I’ve reduced my coverage once due to rising premiums, but I know I’m just delaying the inevitable. I like your idea of suspending your current policy, and purchasing another one to go along with the first one.
Frances: I am not sure your LTC insurance works this way - please check to be sure. We have LTC insurance and I don’t believe you accumulate benefits, You sign up at a younger age when you are healthier and pay annual premiums like health care or car insurance. If you lapse on your payments, you lose your coverage. If you start new LTC insurance, you have to get a physical and you are now older - your premiums with a new policy will reflect this. Note: The reason premiums have been rising is because the cost of health care has been rising and plans were designed with less experience in anticipated ltc costs - you may not be able to get the same coverage as new policies change. Note that our financial planners have told us the LTC insurance we started about 15 years ago (I am now 55) was the best deal ever, despite rising costs. LTC is one of the few things that can wipe out your estate (or your kids). You probably chose LTC insurance years ago for a good reason - consider this before discontinuing. Hope this helps.