In earnings reports and a follow-on conference call this morning, Genworth Financial continued their announcements of rate increases to come on new and existing Long Term Care policyholders.  They specifically outlined policies sold in the generation before 2003 as more troublesome, while policies sold since 2003 are profitable.

New business rates have increased 25-50% since this time last year, mainly reflecting the decreased opportunity for interest rates in the marketplace for insurance companies.

Considering LTC Insurance?

If you’re holding off on buying Long Term Care Insurance coverage because of the possibility of future rate increases, you may be miscalculating the odds.  We get calls weekly from existing policyholders facing rate increases, and 100% of the time we are no where close to being able to replace their coverage for less money.  The fact is, LTC insurance was less understood in the 80s and 90s, and the folks who were smart bought then, at a great bargain.  Despite, their higher cost, today’s plans offer tremendous value, though not as good as previous policies did.  Today’s Long Term CAre Insurance rates reflect the morbidity tables and lower interest rates, and are still an excellent hedge against the risk you face of needing Long Term Care.