Home » Amy V. Smith’s Money Talks »Columns » Currently Reading:

The Long-Term Care Dilemma: Insurers Leaving, Premiums Increasing

May 2, 2012 by Blue Ridge Leader filed under Amy V. Smith’s Money Talks, Columns No Comments
Amy Smith-BRL

If you’ve planned for long-term care, you’ve done well because there’s a pretty good chance you or your spouse will have a need for care at some point. According to the National Clearinghouse for Long-term Care (www.longtermcare.gov) about 70 percent of people over age 65 will need some type of care during their lifetimes and more than 40 percent will require care in a nursing home.
According to the National clearinghouse, in 2010 it cost an average of $75,000 per year ­for a semiprivate room in a nursing home, while one year of care at home costs about $19,700 per year.

The Life Insurance and Market Research Association (LIMRA) estimates over seven million Americans have LTCI. However, the U.S. Census Bureau estimates that in 2010 there were over 40 million Americans age 65 and older. So only a small percentage of those who face the increasing prospect of long-term care have LTCI.

Companies leaving the business

In spite of the apparent need for LTCI, some of the largest providers of individual LTCI have either stopped selling individual LTCI or they’re planning to do so, although some of these carriers will remain in the group LTCI market.

So if the need for LTCI remains, why are some of the biggest insurers getting out of the individual LTCI market? There are a number of reasons such as poor investment returns due to the chronic low interest rate environment, the fact that more policy owners are keeping their insurance instead of letting it lapse, the rising cost of long-term care, and the fact that people are living longer, leading to larger LTCI payouts.

If your LTCI carrier is getting out of the LTCI business, don’t worry-you’re still covered. Generally, insurers that leave the LTCI market must either continue to service existing policies or transfer that responsibility to another carrier.

Your LTCI premiums may increase

If you purchased your LTCI policy more than a few years ago, you could be in for a surprise when you get your next premium bill. Several states have allowed their insurers to increase their premiums. If your premium does increase significantly, you may be faced with a dilemma: Do you keep the insurance and pay the higher premium or should you stop paying for the insurance altogether and lose not only the insurance coverage but also all the prior premiums you paid?

Here are some alternatives to consider:

  • Shorten the length of your insurance coverage. For example, if you have lifetime coverage, decrease it to three or five years. The National Clearinghouse estimates women need care on average for 3.7 years while men need care for about 2.2 years.
  • Drop or change your inflation protection. This provision can almost double your premium in some cases. Depending on how long you’ve had your policy, your daily benefit might have increased enough over time to allow you to lower the inflation protection from say five percent compound to three percent simple interest and lower the cost for that protection or drop the inflation coverage completely.
  • Consider replacing a current costly policy with a new one. Even though you are older, you may find that today’s carriers offer fewer “bells and whistles” and at a lower average cost.

Amy V. Smith Wealth Management, LLC, is an independent firm. Amy is a Certified Financial Planner (CFP) and Certified Investment Management Analyst (CIMA) and offers securities through Raymond James Financial Services, Inc., member FINRA/SIPC. Her office is located at 161 Fort Evans Road, NE, Ste. 345, Leesburg, VA 20176. www.amysmithwealthmanagement.com. The opinions and recommendations here are those of the columnist. Content Prepared by Broadridge Investor Communication Solutions, Inc. copyright 2006-2012 Broadridge Investor Communication Solutions, Inc. All rights reserved.

Comment on this article


By commenting, you agree to abide by our Terms of Service.





XHTML: You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Sign up for our email newsletter:

Find us on Facebook:

Sustainable Planet

Pungent Curry

9 Apr 2014

noerpel

The latest version of the IPCC report is published and once again it will go unread by the great masses of climate science deniers and unreported by the media. So it might be useful to revisit the fundamental physical realities …

(Be the first to comment)

Ask Dr. Mike

Understanding Teen Suicide

1 Apr 2014

Michael_Pic

By Michael Oberschneider, Psy.D. Northern Virginia has recently experienced several teen suicides. Last month, two Langley High School students took their own lives just a day apart from one another, and this month it appears two students at Woodson High …

(Be the first to comment)

Virginia Gardening

Spring Is Coming

4 Mar 2014

springiscoming

By Donna Williamson March is an in-between month – some cold and the return of glorious warmth now and then. One way to bring some delight inside is forcing spring-blooming branches. You can cut branches of forsythia, cherry, crabapple, kerria, …

(Be the first to comment)

Sushi's Corner

An Easter Swim

1 Apr 2014

Screen Shot 2014-04-01 at 11.10.56 AM

I felt like a silly nim “cow” poop with these Easter bows in our hair. Okay Nelly, maybe you didn’t because you’re a girl. But me, a Mighty Cairn Terrier male? – PLEASE! Pleasing Mrs. B for Easter pictures was …

(Be the first to comment)

Amy V. Smith's Money Talks

What Baseball Can Teach You About Financial Planning

1 Apr 2014

Amy Smith-BRL

Spring training is a tradition that baseball teams and baseball fans look forward to every year. No matter how they did last year, teams in spring training are full of hope that a new season will bring a fresh start. …

(Be the first to comment)

Go Take a Hike

Blandy Experimental Farm

6 Jun 2012

Molly

By Molly Pinson Simoneau It’s no secret that I love a challenging hike. I’ve written here about hiking sections of the Appalachian Trail and Shenandoah National Park. I’ve taken vacations with my family to Colorado where I’ve attempted to conquer a “fourteener” (a summit that is higher than 14,000 feet), …

(2 comments)

Real Estate Ticker

A Buying Opportunity?

6 Nov 2013

Carl Fischer headshot

By Carl Fischer As a direct result of the uncertainty that has arisen from national and regional politics, with its unsettling effect on the Northern Virginia area, for the past two months there has been a market slowdown which has …

(Be the first to comment)

From the Farm

From the Farm

5 Jul 2012

From the Farm

When the heat index reaches 110 degrees, as it has been doing recently, I try to keep in the shade, or stay indoors. But my lavender, about halfway from full bloom, seems to thrive in it. Hot and dry, I …

(Be the first to comment)

Events

April 2014
M T W T F S S
31 1 2 3 4 5 6
7 8 9 10 11 12

: Art Gallery Reception for Featured Artists -- Abstract painter Evelyn Lopez de Guzman and contemporary painter Sandra Iafrate

Close

April 12, 2014N/A

Meet Evelyn and Sandra and other gallery artists during a free, open to the public reception for this month's Featured Artists' exhibit "Living Color,” showcasing two accomplished painters Evelyn Lopez de Guzman and Sandra Iafrate, in a vivid and dynamic presentation of color, shape and our surroundings.

Evelyn Lopez de Guzman’s vibrant paintings awaken the viewer to connect with nature and the modern world through an interplay of shape, color, and textural materials.

Sandra Iafrate’s combination of realistic and surrealist interpretation of flowers, foliage and landscapes on spacious canvases convey a sense of movement and playfulness.

13
14 15 16 17 18 19

Easter at "The Park"

Close

April 19, 2014

Morven Park
17263 Southern Planter Lane
Leesburg, Virginia 20176
7037772414

Celebrate Easter at historic Morven Park with crafts for kids, an egg hunt in the formal gardens plus a traditional egg roll on the Davis Mansion lawn. Have a family photo taken with the Easter Bunny. Children should bring a basket for the hunt and a large spoon for the egg roll. $10/participating child (ages 2-12), $3/adult. Register at www.MorvenPark.org.

20
21 22 23 24 25 26 27
28 29 30

VAL's Pals Kids Club

Close

April 30, 2014

Village at Leesburg Shopping Center
1601 Village Market Blvd #100
Leesburg, Virginia 20175
USA

Join Inova Loudoun Hospital as the present their Beamer the Dog Program.

1 2 3 4

SCOUTING FOR BRICKS

Close

May 4, 2014

Heritage High School
520 Evergreen Mill Road
Leesburg, VA 20175
USA
7032205202

Scouting for Bricks is an exhibit showing the Love for everything LEGO® . Come see amazing LEGO® creations by Fans of LEGO®, LEGO® trains, Mindstorms robots. We will also have live Star Wars Stormtroopers and an interactive play area with over 100,000 LEGO bricks. Scouting for Bricks is fun for the Whole Family! Visit us at www.ScoutingForBricks.com.

Recent Comments

View From the Ridge

Rural Loudoun Is Different, and We Say Dark Skies Do Matter

4 Mar 2014

viewfromridge

In February of this year a sell out crowd gathered at the county public seat in Leesburg to provide feedback to the Loudoun County Planning Commission on the idea of adding additional sports lights to the upper athletic fields at Franklin Park. Franklin Park includes a really wonderful performing arts …

(3 comments)

Editorial

Steady and Nobull

4 Mar 2014

Blog this! Bookmark on Delicious Digg this post Recommend on Facebook Share on Linkedin Share with Stumblers Tweet about it Subscribe to the comments on this post Print for later Bookmark in Browser Tell a friend

(Be the first to comment)

Park and Ride Lots for Western Loudoun

4 Mar 2014

Jim_Burton_cropped

In 2003, the county purchased 22 commuter buses to serve a growing demand for bus service to Washington D.C. The demand has grown exponentially ever since. The county now owns or leases 65 large commuter buses (with plush seats and on board restrooms) and more are being added every year. The buses are often filled to standing room only as …

(2 comments)

Lifestyle

Sadie’s Race 5K and Fun Run Scheduled for Sunday May 18

9 Apr 2014

sadiestart

Sadie Smile Foundation is putting on the third annual Sadie’s Race/Walk and Kids Fun Run to Benefit Smile Train in Purcellville Sunday, May 18th this year. The race starts at 8:00 a.m. at the train station at 200 N 21st Street in Purcellville. Sign up at Active.com. When Sara Ablard lost her five year-old daughter, Sadie, two years ago, she …

(Be the first to comment)

Dr. Joseph Rogers Dies at Family Farm

1 Apr 2014

Dr. Joseph Megeath Rogers, 90, died on Saturday March 8, 2014 at his Hillbrook Farm near Hamilton following a stroke. Physician, farmer, businessman, rural land conservationist, philanthropist and expert horseman, Dr. Rogers was a tireless advocate and practitioner of country living whose contributions in a broad range of interests were made quietly and with little fanfare. His public persona was …

(Be the first to comment)

Zoldos Presented Citizen of the Year Award

1 Apr 2014

Mayor_Zoldos_Citizen_of_Year_Award

At the biweekly March meeting of the Lovettsville Town Council, Mayor Bobby Zoldos was presented the 2013 Citizen of the Year from the Lovettsville Waterford Ruritans. Presenting the award was Rick Adams, current president along with Board Member Peter Mullally and  Vice President Jeff Boogaard. Adams said, “On behalf of the Lovettsville Waterford Ruritans, we would like to present the …

(Be the first to comment)

Around Virginia

Wolf Won’t Seek Re-election

Frank_wolf

Rep. Frank Wolf (R-10th) today announced that he would not seek election to an 18th term in 2014. He released the following statement announcing his decision: “I have decided not to seek re-election to the U.S. Congress in 2014. It has been an honor to serve the people of northern …

(1 comment)

Virginia Can and Should Work Harder to Combat Hunger

Frank_wolf

By Congressman Frank Wolf Last year, the USDA reported a record number of Americans are struggling to put food on their tables. Across the nation, 49 million people – including 17 million children and six million seniors – are going hungry, a number that has grown substantially over the last …

(Be the first to comment)

Kaine Statement on Navy Yard Shooting

Kaine

U.S. Senator Tim Kaine released the following statement on today’s shooting at the Washington Navy Yard: “My thoughts and prayers are with everyone impacted by today’s tragic shooting at the Washington Navy Yard. As we learn more about the horrific events that unfolded this morning, my deepest sympathies go out …

(Be the first to comment)

Sports

Nominate Your Hometown Hero

9 Apr 2014

ulll

Upper Loudoun Little League’s Hometown Heroes scholarship closes on April 21, 2014. The application is available online at ULLL.org. The scholarship is open to all graduating seniors who played baseball for ULLL at some point in their growing up years. Blog this! Bookmark on Delicious Digg this post Recommend on …

(Be the first to comment)

Lady Vikings Give Back

10 Feb 2014

The Loudoun Valley Girls basketball team held an event on Friday, February 7 at LVHS. The Lady Vikings celebrated “Pink Night” by honoring those who are battling breast cancer or have been affected by breast cancer. The event was held in conjunction with an event held at Woodgrove earlier this …

(Be the first to comment)

Letters

Medicaid Expansion Battle Heating Up

4 Mar 2014

blueridge2

Did you know that there’s a very real possibility that a DC-style budget battle and government shutdown could come to Virginia? The Medicaid expansion battle …

(Be the first to comment)

Endorsing for Profit Businesses?

4 Mar 2014

town of purcellville sign

I recently received an automated email message from the Town of Purcellville soliciting nominations for volunteer award recipients in cooperation with the Purcellville Business Association …

(2 comments)

Another Vote To Overrule Purcellville’s Board of Architectural Review

4 Mar 2014

town of purcellville sign

The Purcellville Town Council, foolishly, in the view of many and perhaps most, has overruled its Board of Architectural Review and approved Mark Nelis’s and …

(3 comments)

Tags

21st Street... 2012 Election... Aldie... Amy V. Smith... Andrea Gaines... Appalachian Trail... Ask Dr. Mike... Attorney General Cuccinelli... Autumn Hill... Babe Ruth World Series... BAR... Barns of Rose Hill... Behind the Scenes... Berklee College... Bethany Anne Decker... Bill Druhan... Bluemont... Bluemont Fair... Blue Ridge Middle School... Bob Lazaro... BRMS... Business... Butterfly Gourmet... Campaigns... Carl Fischer... Caroline Greer... Catoctin Creek... Catoctin Creek Apartments... Chairman Scott York... Column... Columns... Committees at a Glance... Crooked Run... Dave LaRock... Dave Williams... David La Rock... Dear Editor... Delegate Joe T. May... Development... Dine With Us - Hunt Country Gourmet... Donna Williamson... Down Syndrome Association... Dulles Greenway... Dulles Rail... Dulles Toll Road... Editorial... Environment... Equestrian... Events... Faith... Farm and garden... Fields of Athenry... Franklin Park... Franklin Park Arts... Frank Wolf... Furnace Mountain Band... Gabriella Miller... George Allen... GLBR... Gold Award... Gold Cup... Good Shepherd Alliance... Gov. McDonnell... GSA... Hamilton... Hamilton Day... Hampden-Sydney College... Hannah James... Harris Teeter... Hill High Store... Hillsboro... HUBZone... Hunt Country Gourmet... Hurricane Sandy... Ida Lee... James Madison University... Janet Clarke... Jim Burton... JMU... Joe May... John Flannery... Joshua's Hands... Jr.... Karen Jimmerson... Kelli Grim... Kitchen Science Kids... Kwasi Fraser... Ladies Board of Inova Loudoun Hospital... Ladies Board Rummage Sale... Lansdowne... Latanger N. Gray... LCHS... LCPL... LCSO... Leadership Loudoun... Leesburg... Lincoln... Lincoln Elementary School... LINK... Loudoun BOS... Loudoun Country Day School... Loudoun County... Loudoun County BOS... Loudoun County Fair... Loudoun County Fairgrounds... Loudoun County Fire and Rescue... Loudoun County Government Reform Commission... Loudoun County Master Gardeners... Loudoun Interfaith Relief... Loudoun Lyric Opera... Loudoun Master Gardeners... Loudoun Wildlife Conservancy... Loudoun Youth Volleyball... Lovettsville... Lucketts... LVHS... Malcolm Baldwin... Mark Dewey... Mark Gunderman... Mark Nelis... Mary Baldwin College... Mary Daniel... Mary M. Bathory Vidaver... Mary Rose Lunde... Meredith McMath... Metro... Middleburg... Middleburg Academy... Mitt Romney... monarch butterflies... Morven Park... Mosby Heritage Area Association... Music... MWAA... NoVa West Lacrosse... Oatlands... Old Dominion Valley... Open Burning Ban... Opinion... Patrick Henry College... Police Blotter... Polka Dots... Potomac Falls High School... President Obama... Public Safety... PUGAMP... Purcellville... Purcellville Board of Architectural Review... Purcellville First Friday... Purcellville Town Council... Question 1... Randolph_Macon Academy... Real estate... Rep. Frank Wolf... Rob Jones... Round Hill... Sadie's Race... Salamander Resort... Sam Brown... Samuel Moore-Sobel... Schools... SCR... Shenandoah University... Sheriff Chapman... Southern Collector Road... South Riding... Sports... St. Francis de Sales Catholic Church... St. James United Church of Christ... Sterling Costco shooting... Supervisor Delgaudio... Supervisor Eugene Delgaudio... sushi... Sushi's Corner... Sustainable Corner... Sustainable Loudoun... Tally Ho... The Little Mermaid... Thomas Balch Library... Tim Jon... Tim Kaine... Tony Noerpel... Town Council... Toys for tots... Transportation... ULLL... University of Mary Washington... Upperville... Veterans... View... View from the Ridge... Vineyards... Vineyard Square... Virginia Gardening... Waterford... Watermelon Park... Wild Loudoun... Woodgrove... Woodgrove High School... Wounded Warrior... Your Money

Archives

  • +2014
  • +2013
  • +2012
  • +2011
  • +2010
  • +2009