Have you heard this story before? A traditional long-term care insurance policy was purchased years ago and now the insurance company that issued it will be increasing the premiums. 60%, 30% and 90% increases aren’t unusual. Think about this; when these policies were created 40 years ago, the actuaries expected the lapse ratios (the percentage of policies that would be cancelled/surrendered/forfeited) to be in the neighborhood of 30-40%. Guess what, these lapse ratios are hovering around 3-5%. Why? Longevity! We are living longer due to advances in medical technology, changes on our diets and new medications being introduced routinely to help “keep us around.” The ONLY way the insurance companies that offer Traditional long-term care insurance can stay afloat, is to increase premiums or sell new policies. What are your options at that point? Modify your policy (reduce your benefits), pay the higher premiums or terminate your coverage.
What if I told you there are options available that offer GUARANTEED premiums that will NEVER change and if you should pass away without using all of your benefits, they would be passed on in the form of CASH to your loved ones? Sound to good to be true? It isn’t! Contact Adam at Eisenberg Insurance at 614-528-0011 to learn more about the best kept secret in Long-Term Care planning!