Insurance costs for long-term health care are skyrocketing, with annual premiums more than doubling in some cases. What’s going on? And, more important, what can you do about it if you have a long-term care policy or are considering buying one?
The rising premiums are evidence that insurance providers gambled on long-term policies — and lost.
The insurers underestimated just how quickly, and how high, the health care costs of aging boomers — their prime market — would increase. To compensate, 10 of the 20 biggest insurance companies have stopped selling new policies; the rest are charging more than ever for coverage.
(MORE: Should You Buy Long Term Care Insurance?)
In order to beat rising rates, you’ll need to lower your coverage expectations and accept some trade-offs. (For the ABCs of long-term care insurance, read this Next Avenue primer.)
If You Own a Long-Term Care Policy
Click here for three ways to lower your premiums if you already have a policy
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