Long Term Insurance Question

Traveller

Hi, All -

I received a price quote from an insurance agent for Long Term Health Care in which the agent typed that my rates would be locked in forever. When I asked him about it, he said that typing that was his mistake, and that the insurance company could never be held legally accountable to maintain that rate forever. I have the printed copy of the quote from the agent.

Is he right, or hoping I don't know better?

Thanks!

Bottom Lines

Are you asking whether the agent's mistake in the way he typed up an email will give you leverage when it comes to asking for the same rate 20 years from now??? The answer to that is NO... LOL

Traveller

Not an email. An official quote on company letterhead paper.

gandrfab

Traveller wrote: »

Not an email. An official quote on company letterhead paper.

Somehow that doesn't make it solid.

seajay-1

Mister should be able to provide professional guidance

Finfinder

Traveller wrote: »

Hi, All -

I received a price quote from an insurance agent for Long Term Health Care in which the agent typed that my rates would be locked in forever. When I asked him about it, he said that typing that was his mistake, and that the insurance company could never be held legally accountable to maintain that rate forever. I have the printed copy of the quote from the agent.

Is he right, or hoping I don't know better?

Thanks!

The reason you should buy long term insurance early is to lock the rates in for your age ....you will have to pass some type of health or physical test to be issued the policy. Are you 65 ?

Knotabite

Most LTC policies lock in with your age so you won't get an age increase each year and most LTC plans are very stable so you don't see large increases year to year like health insurance plans. That said they can go up across the board same percent to all members at least the carriers I am familiar with but it is rare.

Mister-Jr

Traveller wrote: »

Hi, All -

I received a price quote from an insurance agent for Long Term Health Care in which the agent typed that my rates would be locked in forever. When I asked him about it, he said that typing that was his mistake, and that the insurance company could never be held legally accountable to maintain that rate forever. I have the printed copy of the quote from the agent.

Is he right, or hoping I don't know better?

Thanks!

Long term care insurance rating are not guaranteed beyond the first annual premium. Report him to the state and let them investigate.

http://www.myfloridacfo.com/division/agents/

Lobstercatcher229

I took the advice to get the Long Term Care insurance before I was 60. After a few years the premium went up. So I decided to cancel the policy. I was under the impression that it wouldn't increase that much. But I have read that Long Term Care policies have gone up significantly in recent years.

stc1993

My life insurance sure jumped when I turned 60.

lakeman

NO matter if you need LTC, do it NOW. I had a, apparently, a self induced TIA 30 years ago and the insurance companies will not let me forget it. I literally have no health issue other than slightly elevated BP once in a while, and boarder line, no meds, pre diabetes(for years) and they will never give me LTC.

navigator2

Traveller wrote: »

Hi, All -

I received a price quote from an insurance agent for Long Term Health Care in which the agent typed that my rates would be locked in forever. When I asked him about it, he said that typing that was his mistake, and that the insurance company could never be held legally accountable to maintain that rate forever. I have the printed copy of the quote from the agent.

Is he right, or hoping I don't know better?

Thanks!

Bob is it a supplemental policy? Some companies won't raise rates as you get older even though they won't "guarantee" it won't happen. Major medical is subject to rate increases every year but not all supplemental. They may phase out that type of policy but still honor your purchase if you keep the premiums up. For example, the amount paid to you won't ever change either as health care costs increase so it is kind of a push.

Mister-Jr

navigator2 wrote: »

Bob is it a supplemental policy? Some companies won't raise rates as you get older even though they won't "guarantee" it won't happen. Major medical is subject to rate increases every year but not all supplemental. They may phase out that type of policy but still honor your purchase if you keep the premiums up. For example, the amount paid to you won't ever change either as health care costs increase so it is kind of a push.

Although LTC is not my field of expertise I am unaware of any carriers that will guarantee the premium. The problem people face when buying LTC coverage is they are quoted the premium for the purchase for the current year but by year five, the premium has doubled, and they have to drop the policy, essentially wasting five years in paid premium and still having no coverage.

Personally, I think it's a terrible buy and would not recommend it for anyone.

Lobstercatcher229

Mister-Jr wrote: »

Although LTC is not my field of expertise I am unaware of any carriers that will guarantee the premium. The problem people face when buying LTC coverage is they are quoted the premium for the purchase for the current year but by year five, the premium has doubled, and they have to drop the policy, essentially wasting five years in paid premium and still having no coverage.

Personally, I think it's a terrible buy and would not recommend it for anyone.

I got my policy because of someone's recommendation but now I agree with you , that it isn't a great buy.

vonnick52

I'm glad the government will control all of this when I'm old so I can be a burden on future generations