One of the most common concerns people have about long-term care insurance (LTCI) is the possibility of premium increases over time. The good news? Rate increases are much less common today than in years past, and there are ways to plan for them smartly.

Why Did Rate Increases Happen in the Past?

Many of the LTCI rate increases you’ve heard about affected older policies sold decades ago. At that time, insurers underestimated how long people would live, how much care would cost, and how few people would drop their policies. As a result, many companies had to raise premiums on existing policyholders to keep up with claims.

Today’s LTCI products are much more stable thanks to:

• Stricter pricing regulations
• Better data and assumptions
• More conservative policy design
• Increased state oversight

Can My Premium Still Increase?

For traditional LTCI, yes, there’s still a possibility, though it’s smaller than it used to be. Any increase must be approved by your state’s insurance department and must apply to a group of policyholders, not just you individually.

Hybrid (asset-based) LTCI policies, on the other hand, typically feature guaranteed premiums that won’t increase over time.

Ways to Reduce the Risk of Rate Increases

If you’re concerned about future rate hikes, here are a few ways to reduce your risk:

• Consider hybrid or asset-based LTCI, which often come with locked-in premiums.
• Work with an experienced LTC Advocate who can help you compare policies and find carriers known for pricing stability.
• Build flexibility into your plan, so you can make adjustments if premiums rise (like reducing benefit amounts).
• Apply sooner rather than later to secure a more favorable premium when you’re younger and healthier.

Remember, Planning Is Worth It

Even with the potential for rate increases, the cost of care without insurance can be overwhelming. A solid long-term care insurance policy provides financial protection, flexibility, and peace of mind.

Not sure which LTCI policy is right for you?

Our trusted LTC Advocates are here to help. Schedule a free, no-obligation consultation to explore your options and get expert guidance tailored to your needs.