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- #21
I had an hour long meeting with a LTC Insurance broker yesterday. He presented options from six different companies. Because I insisted on a 5% annual benefit increase, it did drive the price a bit higher than I originally thought. He suggested that I consider 3 or 4% annual benefit increase, but I truly believe that as us boomers age, more and more of us may need LTC. Simple laws of supply and demand will drive up the cost of LTC faster than CPI. [MENTION=34298]Mac1958[/MENTION] do you think I'm being too aggressive thinking that 5% is the way to go?
I did learn that in my state, the LTC insurance companies can only petition the state for rate increases once every three years. My state has a tendency to deny rate increases, or if they grant them, it is always less than the insurance company asks for. In my state, rate increases for LTC insurance have averaged less than .25% annually over the past 20 years for existing policies. I can't think of any other type of insurance that has such a low rate of premium increase.
Transamerica and Genworth are looking like my best value. I'll probably pull the trigger in October or November. It's before my next birthday and after my guaranteed bonus which is more than enough to cover the annual cost.
I did learn that in my state, the LTC insurance companies can only petition the state for rate increases once every three years. My state has a tendency to deny rate increases, or if they grant them, it is always less than the insurance company asks for. In my state, rate increases for LTC insurance have averaged less than .25% annually over the past 20 years for existing policies. I can't think of any other type of insurance that has such a low rate of premium increase.
Transamerica and Genworth are looking like my best value. I'll probably pull the trigger in October or November. It's before my next birthday and after my guaranteed bonus which is more than enough to cover the annual cost.