Upheaval in the long-term care (LTC) market has drastically increased premiums and reduced consumer choice. In the last couple years, many LTC carriers left the market or dramatically increased their rates when they discovered that they had dramatically underpriced coverage.
MetLife, for instance, eliminated its long-term care insurance products at the end of 2010, saying that interest rates, among other things, made the product line impossible to continue. At the same time, John Hancock announced that it was raising premiums on in-force policies by 40%.
Read this complete analysis of the impact at AdvisorFX (sign up for a free trial subscription with full access to all of the planning libraries and client presentations if you are not already a subscriber).
For previous coverage of long-term care insurance in Advisor’s Journal, see Long-term Care Insurance Reform Act of 2010 (CC 10-46) & Long-Term Care Insurance—A Desirable, Tax-Advantaged Employee Benefit (CC 08-28).
For in-depth analysis of long-term care insurance, see Tax Facts: Long-Term Care Insurance.
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