Options for Dealing With Rising Long-Term-Care Insurance Premiums

Buffeted by huge rate hikes, most policyholders are choosing to trim their coverage.

(Image credit: Copyright 2012 Roel David Smart)

Ken Witty, a retired television news producer in New York City, thought he had done everything right. After spending a career in financial news, Witty, 75, understood how the unpredictable costs of long-term care could devastate his retirement plan, so he bought a long-term-care insurance policy from Genworth when he was 65. For coverage that would provide a $250 daily benefit for three years and grow by 5% per year, he paid about $3,600 a year.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.