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How To Supplement An Existing Long Term Care Policy Without Paying Premiums
Quite a few people may find themselves in this situation
They had the foresight to buy a long term care policy 5-10 years ago. My first comment is: good for them. When you sit down and take a look at the premium for long term care at various ages, you quickly see that the younger you buy it the better. This seems obvious, but I am here to tell you that the premium differences are extreme. Take a look at the premium at age 45, for example, and compare it to age 65, the Toto Site age where most people even start thinking about long term care.
However, (using Arizona as an example) 5-6 years ago nursing home expenses were about $120 a day. This works out to around $43,000 a year. Today, the average is $70,000 a year.
Upon becoming aware of this fact, many people want to take the steps necessary to get their coverage more in line with current costs. When they start looking around, they discover two things
Because they are older, the premium is substantially greater. A lot of times, it is so high that its not even affordable.
Looking at similar coverage at an older age and seeing a higher premium makes sense, but there is another historical factor as well. Over the last five years, long term care premiums have increased about 40%. A lot of this had to do with initial insurance company pricing. The actuaries began their mathematical assumptions using statistics for
