rockville financial planning services

3rd Quarter 2017

Rising health care costs have been at the forefront of political and economic debate for over a decade.  One often overlooked contributor to these rising costs is the increase in demand for assisted living or long-term care.  As they age, more Baby Boomers are making the transition to assisted living, triggering a growing number of long-term care insurance claims.  This increased activity has put a strain on insurance companies that must pay for the care covered under these policies.  Unfortunately, many companies are realizing the premiums they are collecting may not be sufficient to fulfill the claims owed to their policyholders.

How does this affect me?  To cover this insufficiency, companies are raising premiums for existing policyholders.

What are my options?  Many people have been forced to decide whether to keep their coverage in place and pay a higher premium or cancel their policy altogether.  What insurance companies often don’t tell you is that there may be other options.

In many cases, insurance companies will let you reduce your coverage or drop expensive riders and cost-of-living adjustments to reduce premiums.  Some companies even allow the option to trade in your existing policy for a “paid-up” policy and cease premiums altogether, but still retain some coverage.

We are happy to work with you and your insurance agent to determine the best option for you.

Brooke Wano, CFP®, CLU®
Financial Advisor

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