Page 52 - Growing Old Without a Plan for Long Term Care is not for Sissies_Neat

34 Growing Old Without a Plan for Long Term Care is not for Sissies Prior to the last few years, rate increases among the top insur- ance companies were rare. However, for several reasons including reduced investment income, lower policy lapse rate and higher policy usage than expected, most companies have had to raise rates on existing policyholders in recent years. Experts believe that poli- cies purchased today are probably priced appropriately and therefore rate increases are less likely. Still, it’s a good idea to plan for a possible rate increase when you make your purchase. Also, keep in mind that if in the event of a rate increase you are unable to afford the higher premium, you will likely be offered an opportunity to reduce benefts to keep your premium at or near the original cost. Something to consider that can affect your cost for Long Term Care Insurance: Most people don’t purchase Long Term Care Insurance in an amount suffcient to pay for the full cost of their care. They self-fund part of the expected cost and insure the rest. Your Long Term Care Planning Advisor will help you determine what combination of self-fund and Long Term Care Insurance is right for you and your budget. Summary The cost of your Long Term Care Insurance policy is determined by you. With the aid of your Long Term Care Planning Advisor you fnd the combination of benefts and premium that meets your needs and your budget. Many people choose a combination of Self-Fund and Long Term Care Insurance instead of purchasing enough Long Term Care Insurance to cover all the expected cost. Also, unless you want to make sure the insurance company makes more money off of you, plan on paying your premiums annually.