John Ryan, Ryan Insurance Strategy Consultants, Greenwood Village, Colorado planning that prices long-term care insurance policy holders growth rate of 20% to 30% every five years to prepare, is a good way to estimate your how many can afford to pay for the policy, even if interest rates eventually will not rise at this rate.
If your insurance company to inform you that the price up, you do not have to pay higher premiums. Typically, you can shrink the amount of benefit or per diem, to extend the waiting period, or reduce inflation protection. John Hancock, it was announced that up to 90% rate increase, two years ago, to keep interest rates with policyholders who reduced 5% infla tion protection to 3.2% or 2.7%, depending on the policy
Before you decide what to do, figure out how much you gained so far and the benefits change will affect future benefits – as well as how much you can pay to take care of your own pocket. “5% compound inflation benefit of doubling every 15 years, doubling its 3 percent every 25 years. This is a huge difference,” Ryan said.
This is rarely give up your policy and look for a substitute is a good idea. Jesse Slome, executive director of the American Association for Long-Term Care Insurance, said the new exchange rate policy is 30-50% higher than five years ago. And your premiums may be higher, because of your great age, even if you are in perfect health. A 55-year-old man will pay $ 4,680 per year can be $ 6,000 per month benefit from a 12-week waiting period and 5% compound inflation protection Northwestern Mutual policy. But 60-year-old will have to pay the same coverage $ 5,316, assuming that his health has not changed.