Prominent long term care insurance carrier Penn Treaty recently announced that it will discontinue offering the "unlimited lifetime" benefit option on all new policy forms as of 1/1/2007. Will other insurance companies follow suit? We think so, as the industry adjusts to changes in the all-too-real world of care and care giving.
With rising baby boomers life expectancies and broadening offerings in the care delivery systems "unlimited lifetime" benefits simply pose expanded and uncertain risk for insurers. This risk naturally translates to pricing which places "unlimited lifetime" benefit out of reach for the average consumer, so the insurers are opting to offer benefits which are limited to a fixed number of years payout or a limited "pool of money" payout.
This makes sense by insurance standards. Exposure to unlimited risk is not prudent for most companies, although some carriers may still choose to offer "unlimited lifetime" benefits to high net-worth clients.
Look for policies to focus more on 5-year, 4-year and 3-year benefits for long term care. This fits the common care profile, and 5-years of benefits would allow for transfer of assets under Medicaid guidelines set by the Deficit Reduction Act of 2005, meaning an estate could be protected while still qualifying for Medicaid after 5 years of "private pay" through the insurance mechanism.
We expect more and more insurers to limit their exposure by eliminating old-fashioned "unlimited lifetime" benefits. This change affects newly purchased policies, not policies already in force, and is yet another adjustment as this industry comes to grips with changes in the world of long term care.
This comes on the heels of the initial round of industry adjustments reflected in the waves of premium rate increases from 2001-2006 as insurers corrected for the initial under pricing of policies sold in the 1990s, the first decade these policies were offered. Considering the likelihood of future claims due to the cold hard fact that nearly half the population will need long term care, insurers have a duty to remain financially sound in order to pay future long term care insurance claims. This just makes good business sense.
Consumer choices are changing, surely, yet a need still remains, the need to protect assets from the devastating costs of long term care by transferring the huge risk of care to insurers though the insurance mechanism. It's really pretty simple: The risk is very high, and so is the cost of care, and there is simply no other vehicle than insurance coverage to protect your savings and investments.
Internet users can arrange for free, comparative rate quotes from respected, top-quality companies by searching online for "long term care insurance buyers advocate".
Listed below are more articles related to the above article from the "Insurance" article category.
People interested in the above article "The End of Unlimited Lifetime Benefits in New Long Term Care Insurance Policies" are also interested in the related articles listed below:
Accidents at work cannot be avoided no matter how much effort is made to avoid them. Companies that take the proper safety precautions to protect workers reduce the risk of potential problems. When accidents happen, accident claims can be submitted by workers looking for a way to get compensation for an injury. This article will discuss the potential accidents that may happen at work and how companies should properly prepare.
Payment Protection Insurance, commonly abbreviated as PPI, is an insurance coverage package, meant to cover outstanding loans, overdrafts and other forms of debt. This insurance cover is usually an add-on product that is included in the final computation of overdrafts and loans. The primary purpose of this product is to protect the borrower, from circumstances that are beyond their control, which may prevent them from servicing their debt. Such circumstances include loss of employment, ailments, accidents, or death.
Personal injury claims are usually made by people that have been injured in an accident. Accidents can happen in many places but the common one that people suffer from are usually at work or when driving. Potential problems are always waiting to happen, especially when we drive. There are a number of possible crash situations that we should always be aware of. This article will discuss the different causes of road accidents.
Insurance is a threat management technique. Auto insurance also called as vehicle insurance. The main purpose is to protect against financial protection against physical damage or bodily injuries which results from collisions. A personal accident insurance policy is an insurance contract that covers risk arising from accidents, be it at home, or outside. By investing in Accident Insurance, you can protect your family and yourself from the financial concerns such as loss of income and medical expenses that unforeseen accidents lead to. It is contracts that arise from accidents at home or at road. When investing in this plan anyone can protect his or family from the losses or medical expenses.
Landlords have to cope with a lot more than other property owners. Since they are responsible for the upkeep of their property, they share the fears of something going wrong that their own tenants do. But a specially designed insurance policy provides better cover. This article looks at the let property insurance policy and how it offers landlords the protection that they need.
The bereavement of one of the main participants in a wedding can cause a serious problem and even enforced cancellation. However unthinkable this may seem, you would be well advised to take out some form of wedding insurance to cover this eventuality.
Wedding insurance can protect you financially in case your wedding photos cannot be printed. Wedding photos are perhaps the most important memory you will have from your wedding day, so it is essential that your wedding photographs are protected by wedding insurance. Your wedding photographer may not be able to print your wedding photographs if the film, negatives or digital media used becomes damaged or lost. Whilst any reputable photographer should make back up copies of the photographs he or she takes at your wedding, you may find that you're unlucky enough to lose your precious wedding photographs.
