Before you place thousands of premium dollars and even greater benefit amounts at risk, the following is a must read…
Why did it happen?
What can you do?
- Paying the increased premium with no assurance that the carrier won’t require another premium increase in the future.
- Accept a “reduced benefit policy” by forfeiting selected policy benefits such as,
- Reduce your “per day” pool of money from which the policy pays for your care.
- Eliminate the “cost of living” rider that keeps your purchasing power consistent with inflation.
- Request a “reduced paid up” policy that lowers and then freezes your benefits and eliminates your premiums.
- Have your policy carefully reviewed for the policy features and riders that can be amended or eliminated.
Are alternative policy options available?
Yes. A handful of carriers have re-designed long term care insurance policies to provide guarantees of the premiums and benefits, provide the contractual right to designate any unused benefits to a named beneficiary in the form of a death benefit and under certain circumstances, guarantees a partial or even full refund of your premium should you later decide to cancel your coverage. No more “use it or lose it” policies, no more surprise rate increases. Insist that your agent presents these options to you. To not consider a guaranteed policy is to accept expensive unknowns and unnecessary financial risks.