Carolyn Shelby’s Aug. 20 letter, “Plan properly for long-term care,” was well-timed. We purchased long-term care insurance in 2010. Though we were well under 70 at the time, we thought the rates were high and the insurance company made us sign an agreement that it can raise the premiums. In the sixth year, rates went up 12.8 percent. Year seven stayed the same, but this year we received notice that the premiums would go up 15 percent in 2017, 20 percent in 2018 and 7.6 percent in 2019. These are all compounded so, if we chose to continue with the insurance through 2019, our premiums would have increased by 67.5 percent.
The policies, sold in groups, show a similar pattern. The rate increase history received this year is vague, at best, but the drift is, after about five years, the premiums go up around 10 percent, then the sky’s the limit. One group shows an increase of 118 percent over a three-year period.
Demand a copy of the rate increase history before signing with any company. Realize that the rates quoted will likely double and, if you live long enough, the premium could easily increase beyond that.
