Los Angeles, CA, August 16, 2019 --(PR.com
)-- Insurance state regulators have been approving rate increases for existing long-term care insurance but consumers should not panic advises the director of the American Association for Long-Term Care Insurance.
"Insurance regulators approved over 200 long-term care insurance rate increases during the second quarter of 2019," shares Jesse Slome, director of the American Association for Long-Term Care Insurance. "No one likes to pay more but the regulators at the State Department of Insurance have standards to ensure that insurance companies are able to pay future claims and each year insurers pay out billions of dollars in long-term care claims."
When notified of a rate increase consumers tend to think they have been personally targeted or that insurers are hoping they will drop their coverage. "This is absolutely not the case," Slome assured a group of seniors as part of a recent presentation on long-term care insurance rate increases. "Insurers can only change rates for a class of policyholders which could be 10,000 people who all purchased the same policy with similar provisions," he added. "The choice to drop your coverage is always yours but it's not something an insurer seeks."
Slome shared some steps to take when notified of a future rate increase to your current long-term care insurance policy.
"The first step is to use this as an opportunity to review your current financial situation and needs," he suggests. "Do you now have more savings and assets that you could designate to pay future long-term care costs? If so, reducing your policy benefit could help you avoid the rate increase partially or perhaps entirely."
Ask the insurer what options you have, including what changes would enable you to continue paying the same premium. "Many policyholders opted for the five percent inflation growth option years ago as that was the standard then," Slome adds. "But costs in many cases costs for care have not increased by that much and reducing to a lower rate future inflation rate can be adequate."
The bottom line is don't panic. Contact the insurance company. "It is important to read what they send you and when calling the company, to take notes and write down names, dates and times," Slome concludes. "Make sure you have everything documented in writing for your own protection."
The American Association for Long-Term Care Insurance advocates for the importance of long-term care planning. The organization connects consumers with knowledgeable professionals who are independent advisors for no-cost, no-obligation long-term care insurance quotes and policy comparisons.