The Decline of Long-Term Care Insurance
This August, two of the country’s biggest insurance companies, MetLife and Unum, will stand in front of the Florida Insurance Commissioner to explain their company’s reasoning behind why nearly 20 percent of the State’s population will be experiencing this dramatic Long Term Case rate increase. Unfortunately, many of these senior citizens who bought long-term care insurance to protect themselves against the rising cost of nursing home and medical costs will be forced to give up their policies, forgoing the money they already put in, because they will no longer be able to afford the premiums.
But this is not just a Florida problem. This is happening across the country with many long-term care insurers abandoning the business. Many of these carriers have realized that they made a mistake selling these policies, so they stopped selling them altogether. Unfortunately for insurers and their clients, the carriers’ missteps have cost them millions, and even billions, for generations.
” For one thing, people are living longer. U.S. life expectancy rose two full years between 2000 and 2014, from age 77 to 79, and it keeps going up, according to the U.S. Centers for Disease Control and Prevention (CDC).”
According to a spokesman at Unum, they made a determination and found their assumptions to be off the mark. She attributes a longer lifespan, market speculation, seniors’ awareness of their existing policies and a longer period of collection as contributing factors to the LTC decline.
For more information, please read:
Long Term Care for Seniors is on Life Support | CBS News