Parental Medical History Now Influencing The Cost Of Long-Term Care Premiums

I agree with what CurtHorowitz said, "It used to be that the best time to buy LTCI is when you were young and healthy, now the best time to buy it is when your parents are young and healthy." that statement actually fits what is happening today. Long term care insurance companies are getting stricter when it comes to family medical histories. The types of diseases or illnesses from your history will affect the cost of your insurance (you can try requesting quotes from multiple companies on sites like this www.completelongtermcare.com/quote.aspx and compare rates from different companies). Those who have history of Dementia may have higher cost than those with history of diabetes or clean history. Now it seems that everyone of us should stay healthy in order to qualify for ltc insurance.

It used to be that the best time to buy LTCI is when you were young and healthy, now the best time to buy it is when your parents are young and healthy.

The issues written in this article by Juliette brings up valid issues about LTC benefits for additional clarification: a. Why is it that it is always attorney's or financial planners which are quoted about LTC plans? They are generally the least experienced and informed about LTC plans other than to recommend that people look into it and it is fine if they are consulted with plans and designs if the client desires. In most instances, people seldom consult with their advisors about insurance unless it is a contract issue or part of an legal agreement. b. Carriers, agents, and MGA's are still of the mind set to explain to consumers about risk rather than consequences. There is a transition change from there have been few or no premium increases and claims to numerous premium increases and claims. Why did this occur? The financial melt-down of 2008-2009 which changed everything in consumer finance, interest rates, and risk -- all financial and insurance companies and banks were affected which then affected the consumer. c. What did not change is that even with our lousy health care system, people will live longer but not necessarily in good health which means people will need some level of care until they die whether at home or in a care facility. d. The need is there but the public believes in risk rather than to understand consequences. As Charlie Munger and Warren Buffet explain: "it is about timing" -- Own these plans at as early an age as you can while underwriting and plans offer useful benefits. People believe that with waiting, premiums, underwriting, and benefits will be better. With electronics and other non-durable and durable purchases this may be correct but not with LTC plans. Now is the time to own a plan if you have extra cash flow and reasonable health. It is counter-intuitive, own now when there is no need. If you think this is incorrect -- there is no need to own Google, Apple, Berkshire Hathaway, GE, and other stocks individually or in a mutual fund but if you had owned in the early years -- your capital assets and cash flow would be of value. So will owning a LTC plan. It does a cash flow well.

Insurance companies have been doing this in the past and in my opinion they have a point. Family history is a risk factor for long-term care since there are conditions or diseases that are hereditary such as Alzheimer's. Slome is right when he said that companies are scrutinizing health conditions more today because the are paying more money in claims. This is a problem to companies since most of them no longer have enough funds to pay for claims. Well, this was brought about by their failure to anticipate the inflation rate of long-term care, number of people who will keep their policies and their bad investments. People who are considering buying insurance for long term care should be wary of this because some companies will use this as a factor in computing their premiums. But it's good that Med-America that doesn't use family history as a factor in determining premiums. The cost of long term care insurance according to www.aaltci.org/long-term-care-insurance-rates and www.ltcoptions.com/long-term-care-insurance-costs can go anywhere around $1,000 to $7,000, which is still on the pricey side. These can still go up depending on certain factors like family history, age, location and etc. but there are ways to cut premiums. Experts recommend to purchase policy early, create a policy that is small or just right for your future needs and by availing discounts. By doing any of these things, you can save money when buying coverage.