Many clients who reject long-term care insurance (LTCI) or consider dropping their coverage do so on the argument that it’s too expensive.
But that attitude overlooks several important aspects of the costs of not buying the coverage, including the financial and personal burdens imposed on long-term care (LTC) recipients’ families. We asked several LTCI experts for their thoughts on the cost issue and how they approach it with prospects and clients.
The major carriers have been selling LTCI since the late 1980s, she notes. In the intervening years, rate increases were typically modest or nonexistent until the economic downturn in 2008.
Raising rates in response to higher costs is standard business practice for insurers, says Shelton, whatever line they’re in, and consumers typically understand this.
Genworth’s 2010 study, “Beyond Dollars: The True Impact of Long Term Caring,” examined these costs. The authors found that care recipients and caregivers face four major sources of financial strain: