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Long-Term Care Insurance Rate Increase Data Shared By Association
"Inflation is not the cause of rate increases," cites Jesse Slome, director of the organization. "There are a variety of factors that make it necessary for insurers to raise rates on older long-term care policies. We wanted a current resource that provides consumers with updated and relevant information."
According to Slome, insurers have been filing rate increase requests on certain classes of older policies. "The largest requests are associated with policies that included unlimited or lifetime benefits as well as those with a 5 percent compounded inflation growth factor."
The Association's website reports that 29% of rate increases were between 10 and 19% with 31% between 20 and 29%. "We do hear of significantly larger requests," Slome notes. "We understand that people are upset when they are notified about rate increases but there are always options to mitigate the circumstances."
The long-term care Association reports the between 50 and 60% of policyholders chose to pay the increase and keep their original policy provisions. "Clearly they are older and realize the value of what they purchased as well as the fact that they likely could no longer obtain long-term care insurance at any price," Slome explains.
To learn more about long-term care insurance rate increases visit the Association's updated information center at https://www.aaltci.org/
The American Association for Long-Term Care Insurance (AALTCI) advocates for the importance of long-term care planning and supports insurance professionals who market both traditional and hybrid long-term care solutions. To access information, go to https://www.aaltci.org or call the organization at 818-597-3227.