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A Long-Term Care Update

Last update on: Jun 09 2020

Here’s a video and article from Morningstar.com that gives an overview of the long-term care insurance market. It’s a big picture view that’s a refresher for Retirement Watch readers. But it has useful information.

A recent example–in 2016, the federal government, for the long-term care policies that it was offering to federal government employees, those policies pushed through an average increase, premium increase, of 83%. So huge, staggering hikes that consumers have had to reckon with.

And we’ve also seen a lot of insurers just getting out of this business altogether. Back in the year 2000, there were about 125 companies offering standalone long-term care insurance policies. More recently, just 15 companies or even fewer than 15 companies were offering standalone long-term care insurance policies. That doesn’t include companies that were offering hybrid life/long-term care insurance policies. These are pure policies. We’ve seen a big drop-off in insurers who were in this business in the first place.

 

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