Trans Care III Long Term Care Insurance Launched Today
Transamerica released their most recent Long Term Care Insurance product today. Trans Care III, hailed by the company as “the next-generation of long term care insurance” is now available for quotes and applications.
Transamerica is one of many companies who have recently fallen in line with the latest industry method of gender-based pricing. They, along with the other top providers, are now issuing premium rates that rely on the applicants gender as a way to better predict future claims costs.
Over the years, long term care insurance companies have come to the conclusion that women have a much higher risk of needing long term care than men. In fact, they make up about 65% of all long term care claims, in addition to their already lengthened life expectancies. Factoring these issues into underwriting standards has led providers to update their policies in order to keep them financially solvent for future policyholders. Trans Care III reflects the latest gender-based pricing in its adjusted rates.
In addition to an increased couple’s discount (now up to 30%), the new product also boasts various differences from the company’s previous long term care product, Trans Care II. In comparison, Trans Care III has an increased maximum daily benefit, an expanded policy elimination period, and a 3-year rate guarantee, additions that the company touts as responses to agents’ opinions and feedback.
How Are Rates Affected?
On average, rates for Trans Care III have increased in comparison to Trans Care III rates. The percentage of increase varies drastically based on age, gender, and what inflation protection rider is selected:
- Couples rates increased an average of 15%.
- Single women who chose a 5% compound inflation protection rider:
– Applicants in their early to mid 50s: average increase of 65%
– Applicants in their 60s: average increase of 34%.
- Single women who chose the 3% compound inflation protection rider:
– Applicants in their early to mid 50s: average increase of 36%
– Applicants in their 60s: average increase of 25%
- Single men who chose the same 5% compound inflation protection saw an average increase of 15%.
- The only apparent decrease in rates applies to single men who decide on the 3% compound inflation protection, which has resulted in an average decrease of 6%.
Long Term Care Solutions
Although the rate increases may seem substantial, the cost of an insurance policy pales in comparison to the ever-growing cost of long term care. Nursing homes now average more than $90,000 a month, which can quickly deplete your hard-earned savings. Safeguarding yourself against this risk helps reduce the chance you will need to pay for care out of pocket or become a burden on your loved ones.
Buying long term care insurance necessitates some background research. Before you choose a provider or a policy, be sure to speak with an independent agent who will help you determine which specific benefits fit your needs best. Not every one needs the same policy and rates vary widely, so it’s important to compare multiple companies and shop around.
We can help you compare the best providers and find you the best deal. Request a quote today and we will provide you with a side-by-side comparison of the top rated blue chip companies at no cost.