Is long term care insurance a long time gone? In the wake of a skeptical report by Moody’s and a dramatic price increase by one of the major carriers (driven by higher-than-expected medical costs and lower lapse rates), the potential buyers’ market has shrunk — as has the number of LTCI carriers. Many people are turning to self-insurance rather than pay higher premiums while facing an uncertain market for carriers.
When planning for retirement, many advisors focus entirely on the asset side, and don’t spend much time trying to calculate the costs — much of which will be made up by medical and long term care facilities, especially as people live longer. But it now seems that LTCI may be an option available only to the very wealthy, who may not even need it. Well, it seemed like a good idea at the time. Any other ideas? Use the Comment box below.
