Four Options When – Not If – Your LTC Premiums Go Up

If you’re dreading getting a letter in the mail about your long-term care insurance premiums rising, you’re in good company. And you have some decisions to make.

A smiling woman has a drawing of a lightbulb on a Post It Note stuck to her forehead.
(Image credit: Getty Images)

There is no more popular watercooler talk these days than the exorbitant price of gas. As with all buying decisions, you must decide whether the benefit is worth the cost. In the case of filling your tank, if you rely on your vehicle to get you to your job, that analysis is pretty easy.

When it comes to long-term-care insurance, and all insurance for that matter, the immediate reward is not there. You have to pay today in exchange for the intangible benefit of security. All of this is to say, when that letter comes in the mail saying that your long-term-care insurance premium is increasing (again) by 20%, 40% or even 60%, it is an especially tough pill to swallow. After all, will you ever even use this insurance? In the next few paragraphs, I’ll give a bit of history to help you understand your options and figure out what makes sense for you.

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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Evan T. Beach, CFP®, AWMA®
President, Exit 59 Advisory

After graduating from the University of Delaware and Georgetown University, I pursued a career in financial planning. At age 26, I earned my CERTIFIED FINANCIAL PLANNER™ certification.  I also hold the IRS Enrolled Agent license, which allows for a unique approach to planning that can be beneficial to retirees and those selling their businesses, who are eager to minimize lifetime taxes and maximize income.