Baby Boomers Struggle to Get Long-Term Care Insurance

Many Baby Boomers are beginning to realize they may need long-term care insurance to cover expenses typically  not covered by health insurance, such as in-home care, assisted living, and nursing home costs. However, many insurance companies are altering the long-term care policies they provide and have increased premiums because the claims on these policies have exceeded their predictions due to the fact that people are living longer and developing long-term illnesses.

One of the top five carriers of individual long-term care insurance, Prudential Financial, stated it will exist the market this month—it is one of 10 of the top 20 carriers to have exited the market in the last five years. While some carriers are bailing, others are raising their premiums. The price of long-term care insurance has increased by 6% to 17% since 2011. The industry has created hybrid products that combine long-term care with annuities or life insurance to help address consumer complaints.   

See Christine Dugas, Long-Term Care Insurance Policy Costs Rising, USA Today, Mar. 28, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.