Truth About Self Insuring Long Term Care. Book an Appointment to Learn More
Sometimes willful ignorance can get the best of us ever heard this one: “My spouse will take care of me, and our kids will take care of them”? Think about your oldest living relatives right now who are married, could either one of them pick the other up and put them into a chair? Did your parents, grandparents, aunts, and uncles probably think the same thing? What really happened?
Look, the 800lb gorilla sitting in the corner is the fact that traditional Long-Term Care policies sold in the past have had rate increases. Why did the rates increase? Because more policyholders activated their long-term care benefits, and the actuaries at the insurance companies made a miscalculation, oops, sorry. Insurance companies had to increase the premium it is cause and effect, premiums collected to the monthly LTC benefits paid to policyholders. Did the insurance companies intentionally do this?relatives right now who are married, could either one of them pick the other up and put them into a chair? Did your parents, grandparents, aunts, and uncles probably think the same thing? What really happened?
No, they underestimated the claims, more policyholders triggered benefits than expected. Does it matter now? Not really, if anything it proves the importance of proper planning around long-term care. So, what about the policyholders who didn’t have a bad experience? They made out like bandits, because policyholders received way more in tax-free benefits than they ever paid in premiums. Hopefully their children send thank you cards to the agent who convinced their parents to purchase the policy because they didn’t have to deal with a nightmare. “Heaven forbid” these people speak up, or we listen to what they have to say about their experience. Naw! Let’s focus on the people who haven’t triggered their benefits and complain about LTC insurance companies increasing premiums and ripping off the policyholders. do this?relatives right now who are married, could either one of them pick the other up and put them into a chair? Did your parents, grandparents, aunts, and uncles probably think the same thing? What really happened?
In the past people understood the risk and were open to LTC insurance. In fact, the conversation was around who has the best deal for Long-Term Care insurance? Was it GE Capital, John Hancock, or CNA? Today the conversation has changed, is it a good idea to purchase LTC insurance or self-insure? I am not sure when or how the conversation transformed, but it definitely changed.
IT IS BETTER TO LOOK AHEAD AND PREPARE, THAN TO LOOK BACK AND REGRET
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