The past is not a predictor of the future.
We have looked at the question of, “what do I do if my long term care insurance premium increases?” in a previous post. Today we will look at the likelihood of increases on newer long term care insurance (LTCI) policies.
The AALTCI issued a press release yesterday detailing the reasons that newer policies will likely not see the rate increases of those purchased prior to the start of the recession in 2007.
Reasons for the optimism that LTCI premiums will be more stable going forward include:
- Lower interest rates
- Conservative pricing assumptions
- Higher scrutiny before rate increases will be granted
Let’s look at each of these in a bit more detail.