Long-Term Care Insurance May Be a Dying Breed
Investors Services – “Long-Term Care Insurance: Sector Profile” – says that
despite the need for long-term care insurance, the
product’s future is in question because of persistent losses and a
challenging operating environment.
The benefits under early policies were often too generous
relative to factors such as actual benefit utilization rates and lapses,
according to Moody’s. To compensate insurers had to increase reserves and raise rates to improve the
profitability of older products.
New, better designed and priced products seek to reduce risks for
insurers, with changes including more restricted benefits and payout
periods, as well as “combination” policies, which offer long-term care
combined with a life insurance policy or an annuity contract.
Nevertheless, Moody’s believes potential buyers may balk at fewer benefits and higher rates, and sales could go down noting that senior citizens on fixed incomes form a highly sensitive
constituency and regulators could therefore reject or limit new rate
requests.
The exit or retreat of five key firms from the market
since 2010 leaves only one dominant player.
MetLife and CUNA Mutual stopped selling LTC in 2010. In 2011, CNA and
Berkshire pulled out. This year Prudential stopped selling individual
to focus on group sales, while Unum stopped selling group but had
previously pulled out of individual sales.
Since the CLASS Act died, there are still few solutions to funding long-term care. Remember Medicare only pays for this in certain situations. Your choices are limited.
- Buy an expensive long-term care policy.
- Investigate the assurance benefit, in short, using your life insurance to pay for long-term care needs.
- Do effective, ethical and legal estate planning.
- Pay for long-term care out of pocket until you exhaust resources and then hope to qualify for Medicaid.
None of these are sure bets. With block grants in states, there is no assurance that Medicaid will be able to continue funding long-term care. And who knows what will happen with Medicare.
And remember, Medicare, Medicaid might be used for skilled nursing. Assisted living by and large is self-pay until you can’t. Medicaid factors in at times but not usually.
If you are smart plan to age in place. Which means plan to start looking at your house and what you need to do to it now to make it safe for living as you age. With more services moving to community settings, you will be able to access the care and transportation you need as well as find the social interaction that is vital to a quality of life at any age. And with tele-health options increasing, your health care will be increasingly monitored from home.
People are fixated and rightly so on assuring everyone has health insurance for medical needs. This in no way covers your needs as you age. That is swept under the rug.
Prepare people.
Sources: Moody’s, Broker World
2012-12-05 17:46:42
Source: http://anthonyssong.blogspot.com/2012/12/long-term-care-insurance-may-be-dying.html
Source:
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Lion’s Mane Mushroom
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, But it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes:
Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity.
Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins.
Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system.
Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome.
Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function.
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules. Today Be 100% Satisfied Or Receive A Full Money Back Guarantee Order Yours Today By Following This Link.