Rabu, 28 November 2012

LTCi Gets More Expensive

Kinda wondered when the carriers would get around to this:

"Until now, insurers have charged the same premiums regardless of gender for [Long Term Care insurance] policies ... beginning early next year, Genworth Financial, the country's largest long-term-care insurer, plans to start charging women applying for coverage as much as 40% more than men."

This actually makes sense: women tend to live longer than men, so have an increased chance of needing some kind of assistance. As a result, two thirds of LTCi claims dollars go to the fairer sex. Add in carriers' measly investment income in these low-interest rate times, and there's a recipe for some major problems.

And don't be surprised to see underwriting tighten up, as well, as carriers are starting to better understand long-term trends.

And there's this: just because Genworth's going first doesn't mean that the other carriers won't follow their lead, so look for plan prices to begin jumping pretty soon.

Ouch.

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