Author Topic: LTC Insurance Market failing  (Read 835 times)

Axecleaver

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LTC Insurance Market failing
« on: March 18, 2016, 09:19:40 AM »
I see a lot of questions in the forums about long term care (LTC) insurance, which covers some portion of your nursing home expenses at the end of your life. Generally, the advice here is to self-insure or buy an annuity.

This article reinforces the prudence of that advice: http://khn.org/news/long-term-care-insurance-less-bang-more-buck/

Basically, the actuaries got it wrong, and now insurers are raising rates up to 130% per year to shore up their failing businesses. People are falling prey to the sunk cost fallacy and trying to keep their policies in effect. Eventually, this will destroy the LTC insurance market and the product will completely disappear.