Profile image
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

LTCi News: Up & Up

Monday, June 11, 2018 7:26
% of readers think this story is Fact. Add your two cents.
As our population ages, Long Term care insurance has become more and more popular as a cost-effective way to preserve one’s hard-earned nest egg. After all, the cost of a nursing facility stayt (or even at home care runs into the thousands of dollars a motnh, and can quickly eat up one’s savings.

The challenge,of course, is that as we age we tend not to get healthier, and the odds of having such a claim increase each year. Which begs the question: how is this affecting carriers’ bottom lines?

Well, we have one answer here, thanks to co-blogger Bob:

Unum Falls as Long-Term Care Loss Ratio May Prompt Reserve Charge

Um, Henry, what does this even mean?

Quite simply, their actual loss ratio was almost 10% higher than last year’s (loss ratios are metrics of how much is paid out versus premiums paid). That’s not exactly a prescription for long term financial stability. A big part of the problem is that those on claim for cognitive impairment (eg Alzheimer’s and the like) are living longer, which is nice (kind of) for them, but a direct impact on the insurer’s bottom line.

Which may mean another round of rate increases.

Or not:

Original content copyright © InsureBlog


Source: http://insureblog.blogspot.com/2018/06/ltci-news-up-up.html

We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories
 

Featured

Loading...

Top Global

Top Alternative

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.