Long Term Care Insights

As a team, we strive to keep our clients informed so that together, we can make strategic plans that add to your financial health. Long Term Care Insurance is something that many people don’t give proper consideration to as a part of their comprehensive financial plan. In our extensive experience which spans several decades, we have seen how making intentional decisions can pay off in dividends – especially when it comes to something as critical as Long Term Care. We may not be able to escape “Father Time,” but we can use today to make the right decisions for a healthy financial future.

Here is a short series of insights from sources we value that shed light on the importance of Long Term Care, especially now following the lingering pandemic.

Covid's Effect On Long-Term Care Insurance

For the past few years, Covid has made everyone think a little harder about mortality and health. But now that the worst of the pandemic seems to be behind us, how has it affected long-term-care (LTC) insurance? “We have definitely seen an increase of LTC insurance inquiries since the summer of 2020,” says Brian Gordon, president of Murray A. Gordon & Associates/MAGA Ltd., an LTC specialist firm in Bannockburn, Ill. Many clients who had rejected long-term-care coverage in the past, he says, came back with a change of heart. “We generally see clients … between the ages of 48 and 62, but since Covid, we’ve been receiving more inquiries from people 70 and older,” says Gordon.

While planning for long term care earlier in life is often a wise decision, it is never too late to decide to add this vital component to your financial plan.

COVID-19 and Long-Term Care Insurance Operations

COVID-19 has had a tragic and shocking effect on long-term care in the United States. About?23% of U.S. COVID-19 deaths?have involved people who lived or worked in LTC facilities. Everything else pales in comparison with that grim statistic.

This data shows that having Long Term Care in place, particularly for older individuals, is important due to how the Coronavirus has impacted a large percentage of elderly people and their caregivers.

Long-Term-Care Insurers Are Winning Premium Hikes up to 109%

Long-term-care insurers persuaded state regulators in the fourth quarter that they need higher premiums, with Virginia agreeing to let?Allianz?more than double rates for more than 1,300 customers. Allianz’s U.S. life insurance unit was granted a 109% increase, the highest in an analysis of fourth-quarter company filings by?S&P Global Market Intelligence. It received approvals for a total of $12.6 million in rate increases for about 13,100 customers. Genworth Financial, the largest long-term-care issuer by the number of contracts in force, was cleared to raise premiums on 87,000 policyholders in 14 states by a total of $72.6 million.

While this may not be great news for those insured or seeking to get insured, it shows the drastic response to the elevated demand in care needed as a result of the pandemic. There is no time like the present to get insured as you never know when you may need it.

If you are interested in learning more about the latest Long Term Care Insurance options, we’d welcome the opportunity to review them with you. We’re here to help as your needs evolve in our world full of constant change. Please let us know how we may be able to be of assistance.

Sources:

https://www.fa-mag.com/news/covid-s-effect-on-long-term-care-insurance-67075.html

https://www.thinkadvisor.com/2022/03/23/covid-19-and-long-term-care-insurance-operations/

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