The Advisor's View of Long-Term Care Planning

Helping design more affordable LTC Insurance premiums for clients

Posted by Tom Riekse Jr | Feb 3, 2015 9:58:00 AM

Recently, the AALTCI reported that the typical premium costs for LTC Insurance increased 8.6% in January of 2015 compared to the prior year.  The higher rates are the result of both higher claim costs and the historic period of low interest rates.   Last year, long term care insurers paid out a record $7.5 billion in claim benefits and the Association predicts the industry will pay some $34 billion in annual claim benefits by 2032.

However, we also know the sweet spot for buying LTC Insurance is about $1,500 per year.  What are strategies for advisors and consumers in designing more affordable plans?  Here's a slideshare that talks about someone reducing a $9,000 annual premium to $1,500.  

 

 

 

 

 

Looking for more creative ways to design plans with reasonable premiums?  Check out this post

How to Design LTC Insurance for 5 different wealth groups

 

Written by Tom Riekse Jr

Tom Riekse, ChFC, CLU, CEBS is the Managing Director of LTCI Partners, one of the largest national distributors focused on long term-care planning. LTCI Partners works with financial advisors, benefit brokers, associations and anyone else interested in helping protect people against the devastating financial impact of a long-term care event.

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