Long-term care insurance premiums decrease for some, increase for others

The American Association for Long-Term Care Insurance has released its 2016 annual price index. The results are a mixed bag, with increases for some, slight decreases for others.

Female applicants, considered a greater liability by insurance carriers because of their longer life spans, have seen premiums increase. For a healthy woman of 55, the annual premium for a policy offering $164,000 in coverage  is $1,490. Last year it was $1,390.

Coverage for men and for couples declined slightly. In 2016 a healthy man at age 55 will pay about $1,015 for $164,000 in coverage, a decrease of $1,060 from last year. A married couple where both spouses are 60 years old will pay $2,010 for $328,000 in benefits, as compared to last year's premium of $2,170. Click here for the report.

I encourage all my clients to look into long-term care insurance. For those who would like to insure but cannot afford the premiums or qualify medically, there may be other options. One such option is a "hybrid policy." There are two types of hybrid policies: life insurance policies that contain a long-term care rider, and annuity-type policies. For more information on both types, please see my prior blog post. 

Last, there is the fallback of Florida Medicaid benefits for long-term care. Medicaid is a federal program, but Medicaid rules differ from state to state since states interpret the rules differently. If you cannot obtain long-term care insurance, it is often possible to tap into the Medicaid system before losing everything to a nursing home. See my website for a more detailed explanation of Florida Medicaid benefits.