LTC rates for women are increasing

As expected, long-term care (LTC) rates for women have increased. The decision by Genworth and John Hancock to charge women more for LTC insurance may be the beginning of a pricing trend across the industry. Milliman’s Dawn Helwig offered perspective in a recent Chicago Tribune article.

Here’s an excerpt:

Long-term care insurance costs are rising sharply, especially for women.

Two major providers, Genworth and John Hancock, have begun gender-based pricing for policies based on women’s higher claiming levels. Other insurers will likely follow suit.

…Among a dozen companies surveyed this year, all but two said they were considering price increases, said Dawn Helwig, a consulting actuary and principal with consulting firm Milliman.

“We’re looking at all aspects” of long-term care rates,” said John O’Gara, a senior vice president in New York Life’s Agency Department. He expects average increases of about 20 percent, beginning next year.

For more of Milliman’s perspective on LTC, click here.