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The Elephant in the Room - LTC Rate Increases

The need for long term care insurance has never been greater!

Longer life expectancies, rising costs of care and the desire to be able to choose the type and location of care are all more important than ever. Companies are paying out many claims and policyholders are benefitting. That said, the legitimacy of the LTC market is being challenged due to unprecedented rate increases. Price stability and rate increases have become a primary concern for many.

In 2017 and looking ahead, the good news is the pricing of today's policies are much more conservative. The actuarial assumptions such as lapse rates, investment returns, and claims usage all point to much greater confidence in price stability. We now have 70 times more claims data as compared to 15 years ago! As a result, the Society of Actuaries recently published a pricing study showing the likelihood and magnitude of possible future rate increases are now under control. For more information on this topic, please click the link below to view the article, Long Term Care Insurance is Too Legit to Quit, from the March 2017 issue of Broker World.

Contact us so that we might assist you in setting up a plan to help you protect what you've spent a lifetime accumulating.


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