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Re: LTC premium cost

Posted by Kelly Wentz, CSA on November 16, 2001 at 16:07:25:

In Reply to: LTC premium cost posted by Michael Hood on July 16, 2001 at 09:22:32:

Price nor size is the best indicator of quality. Commitment to the LTC market, how long have they sold it, is important. I have many clients in their 20s, 30s & 40s with LTC insurance. I sold myself at age 36. This is not like major medical, the companies know exactly what their potential claim liability will be on each insured (base rate Xs componding inflation rider) Basically there are 3 times to buy LTC insurance 1-Just before a claim. 2- Just before loosing your insurability & 3-NOW. Buy only Lifetime with compound inflation protection at your age. I keep reading here and elsewhere that a consumer should shop and find the lowest premium for comparable benefits. However, it appears to me that we are buying a benefit to be paid in 25 years for a need the insurance company cannot specifically define which means the insurance company actually doesn't know how to price the product. Therefore, all premiums will increase. And, the more liberal the benefit definitions of the product, the more the premium will increase. Therefore, to be overly price focused versus, looking financial strength of an LTC insurance carrier and commitment to the market is somewhat short sighted. Am I missing something?

Follow Ups:

Re: LTC premium cost : Price nor size is the best indicator of quality. Commitment to the LTC market, how long have they sold it, is important. I have many clients in their 20s, 30s & 40s with LTC insurance. I sold myself at age 36. This is not like major medical, the companies know exactly what their potential claim liability will be on each insured (base rate Xs componding inflation rider) Basically there are 3 times to buy LTC insurance 1-Just before a claim. 2- Just before loosing your insurability & 3-NOW. Buy only Lifetime with compound inflation protection at your age. I keep reading here and elsewhere that a consumer should shop and find the lowest premium for comparable benefits. However, it appears to me that we are buying a benefit to be paid in 25 years for a need the insurance company cannot specifically define which means the insurance company actually doesn't know how to price the product. Therefore, all premiums will increase. And, the more liberal the benefit definitions of the product, the more the premium will increase. Therefore, to be overly price focused versus, looking financial strength of an LTC insurance carrier and commitment to the market is somewhat short sighted. Am I missing something?

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