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LTC premiums, CPI and premium increase

Posted by B. Arnett on November 25, 2001 at 13:51:53:

First of, thank you for a real good site, I learned a lot and the info will help me in company shopping.

I need some help:

I looked at 2 companies, JH and GE. I know I need to look at more companies, but I have an aversion to do too much reading in subjects that are not that exciting and thrilling, and your ratings indicate JH and GE are among the tops.

Here is the question: JH has a nice, pretty brochure which talks about premium stability and daily benefits and CPI. I almost made up my mind thinking I can hedge the amount of money I send out every year from now until I die, in exchange for the eventuality of getting 140$ per day, if and/or when I have to live in an NH/Assisted Living Home, I could die before getting there. But then JH has one small line, in the cover letter for the state of SC, saying that the Company reserves the right to change the premium at any point in time.
Now I am getting confused. I would like to know before signing, that a policy will cost me that much money, and regarless of the inflation level, all I will get will be say 140$ a day. How can they change the rate on me, assuming this will be for the entire class of policy.
What if I refuse to pay the difference? Will JH cancel my policy? pay me less per day if the claims do materialize? Or will they offer less benefits for no rate change?
I am looking at GEfn as well. This company specifies the same thing.

Please shed some light. Thanks.

Follow Ups:

Re: LTC premiums, CPI and premium increase James Baldwin 15:30:46 11/26/01 (0)
Nearly every long term care policy is 'Guaranteed Renewable' Scott A. Olson 17:46:45 11/25/01 (1)
- Re: Nearly every long term care policy is 'Guaranteed Renewable' Freddy Schepis 16:34:22 01/23/02 (0)

Re: LTC premiums, CPI and premium increase : First of, thank you for a real good site, I learned a lot and the info will help me in company shopping. : I need some help: : I looked at 2 companies, JH and GE. I know I need to look at more companies, but I have an aversion to do too much reading in subjects that are not that exciting and thrilling, and your ratings indicate JH and GE are among the tops. : Here is the question: JH has a nice, pretty brochure which talks about premium stability and daily benefits and CPI. I almost made up my mind thinking I can hedge the amount of money I send out every year from now until I die, in exchange for the eventuality of getting 140$ per day, if and/or when I have to live in an NH/Assisted Living Home, I could die before getting there. But then JH has one small line, in the cover letter for the state of SC, saying that the Company reserves the right to change the premium at any point in time. : Now I am getting confused. I would like to know before signing, that a policy will cost me that much money, and regarless of the inflation level, all I will get will be say 140$ a day. How can they change the rate on me, assuming this will be for the entire class of policy. : What if I refuse to pay the difference? Will JH cancel my policy? pay me less per day if the claims do materialize? Or will they offer less benefits for no rate change? : I am looking at GEfn as well. This company specifies the same thing. : Please shed some light. Thanks.

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