As the long term care insurance (LTCI) market has grown and matured, it has made changes to create a more stable product. Things such as rates, underwriting, and product design have improved drastically. At LTC Consumer we are constantly updating the insurance carriers and products we offer our clients, assuring we have the best portfolio to protect your retirement and give peace of mind to your family.

Premium Rate Stability

For awhile many insurance companies were increasing LTCI premium rates to better align with the actual costs of providing long-term care (LTC) benefits. These rate hikes were an effort to prevent underpricing, which had caused financial strains for some insurers.

Some states required insurers to submit rate stability filings, which aimed to ensure that premium rate increases were justified and not excessive. This helped protect policyholders from significant, unexpected premium hikes.

Rate stabilization, state regulations, and new and better products have created a stronger market.

A few insurance companies chose to exit the LTCI market due to financial challenges and uncertainty surrounding LTC costs. This consolidation contributed to stability in the remaining market. At the same time new companies have joined the market with a stronger understanding of building products and rates that make more sense.

Underwriting Standards

Insurers were implementing more rigorous underwriting standards to ensure that individuals purchasing LTCI were healthier and less likely to make claims in the near term. This helps insurers manage risk and maintain stable premiums.

State and federal regulators were monitoring the LTCI market closely and making adjustments to regulations to ensure that insurance products were both consumer-friendly and financially viable.

"An informed consumer base can make more suitable choices and contribute to market stability."

Efforts to educate consumers about the importance of LTC planning, including the role of insurance, were ongoing. An informed consumer base can make more suitable choices and contribute to market stability.

Product Design Changes

Insurers were revising their LTCI product offerings to introduce more diversified options. This includes hybrid policies that combine life insurance or annuities with LTC benefits, which were gaining popularity. These products often appeal to consumers who are concerned about the "use it or lose it" nature of traditional LTCI.

Some states in the US had established Partnership programs that encouraged the purchase of LTCI by offering Medicaid asset protection. These programs helped stabilize the market by incentivizing individuals to buy LTCI.

Long term care, short term care, or a hybrid product - we've got solutions to fit your needs.

LTC Consumer has also introduced several short-term care products which offer a shorter duration and a smaller premium.

It's worth noting that the long-term care insurance market can vary significantly by region, and regulatory environments can change. Therefore, if you are interested in LTCI or want to know more about its current stability, we recommend speaking to one of our LTCI specialists who can provide you with the most recent information and guidance tailored to your specific needs and location.