I have written extensively about rate hikes. I encourage people to read what I’ve written. Even after reading about what causes rate hikes, many people still don’t understand them well, or they are reacting to them emotionally rather than rationally. That is when you should call me.
The long-term care insurance (LTCi) industry does not like or want rate hikes. It never has, it never will.
LTCi rate hikes are bad for business.
The LTCi industry did not deliberately sell low-priced policies in order to raise rates later, causing people to drop their policies so they can weasel out of paying claims.
People have many more misconceptions about LTCi rate hikes.
In the case of people who own the Federal LTCi plan, I feel especially bad. They have group coverage. They do not have an accountable salesperson to call. Many are elderly. There is no one to explain what their options are.
Many Federal LTCi policyholders have coverage with extremely robust benefits – benefits that have continuously increased over the years. Sometimes we can pare back these LTCi policies, lower premiums, and retain extremely high performing coverage. Sometimes I show people that even with the rate hike, they still have under-priced coverage.
If you, or someone you know, own a Federal LTCi policy and need further understanding of your LTCi rate hike, please call me.