How long might I need long-term care benefits?
Reuters examines how long-term care (LTC) policyholders can deal with rising rates, offering several suggestions, including this one:
If you’ve got the unlimited coverage and face a big rate hike that you can’t afford, consider dropping back to less coverage. Likewise, anyone shopping the market will do well to consider the less comprehensive coverage.
The LTC market has been moving in this direction in recent years. The percentage of insured policyholders with lifetime benefits has fallen from 36 percent in 2002 to just 15 percent in 2009, according to Helwig.
Three years of benefits will be enough to cover all but 13.1 percent of policyholders, according to a recent Milliman study based on the claims history of four large insurance companies; just 7.6 percent will need more than four years of benefits and only 4.5 percent require more than five years.