Despite the fact that many people understand the benefits of buying long term care insurance, some continue to shy away from this or drop their coverage for a number of reasons.
Our California readers, among others, know that the cost of coverage is something they will have to deal with on a regular basis. Even though a policy may be affordable upon making a purchase, this does not mean it will remain the same way into the future. The reason for this is that insurance companies have the right to increase premiums on customers.
As of late, a growing number of people are complaining about the premium hikes. While some will continue to pay for coverage, others find that they are no longer able to afford it.
Genworth Financial, for example, began to increase rates on existing policies toward the end of 2012. By the end of 2013, the company has received approval to increase rates in 41 states, putting them in position to earn even more money.
While insurance companies make out in the long run by increasing the cost of coverage, consumers are the ones who lose out. This is particularly true among those who are on a fixed income and unable to deal with such an increase.
It is important to realize the benefits of long term care insurance, as well as how much you should be paying for a high quality policy that provides the right amount of coverage.
In the event of trouble with an insurance company, such as a denied claim, it is important to learn more about your legal rights.
Source: The New York Times, “Premiums Rise for Long-Term Care Insurance. Keep It or Drop It?” Ann Carrns, Mar. 21, 2014