LOS ANGELES, Oct. 21, 2016 /PRNewswire-USNewswire/ -- An increasing number of consumers facing rate increases on their long-term care insurance coverage are considering options according to leading national professionals.
"Individuals who purchased long-term care insurance policies are being notified that yearly premium costs will increase, in some cases as much as 120 percent," shares Jesse Slome, director of the American Association for Long-Term Care Insurance (AALTCI). "Insurers offer options that enable the individual to continue paying the same amount and perhaps even less, but people are understandably upset and often want to know if other options exist."
The majority of rate increases are impacting policyholders that include a yearly five percent increase in benefits or provide for an unlimited number of years of coverage. "Adjusting the benefits package is one way to avoid paying more, but in some cases it may be worthwhile to consider alternative options," Slome adds.
"You have the most choices available by acting quickly after being notified of a pending rate increase," explains George Mellendorf, president of LTC Solutions, a national marketer of both traditional and linked-benefit long-term care insurance solutions. "You'll want to seek out specialists with expertise in both solutions who can help explore the pros and cons of any change. Work with someone who represents multiple insurance companies because there are different pricing and policy provisions and health requirements to meet."
An increasing number of consumers are opting for long-term care protection that combines the benefits of life insurance or annuities with accelerated long-term care benefits. According to AALTCI's 2016 estimates, more individuals are looking into these asset-based benefit products than are purchasing traditional long-term care insurance.
"Consumers like the appeal of protection that provides a double duty," says Keith Bercun, Regional Marketing Director for OneAmerica®, a national leader in the insurance and financial services marketplace. "These policies can provide long-term care protection if care is needed but if you never need care, your asset passes to the next generation and becomes part of your legacy," Bercun explains.
To learn more about long-term care insurance costs comparing both traditional as well as asset-based benefit policies contact the American Association for Long-Term Care Insurance to be connected with a knowledgeable professional for your area. Call 818-597-3227 or visit the organization's website www.aaltci.org.
OneAmerica® is the marketing name for the companies of OneAmerica.
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SOURCE American Association for Long-Term Care Insurance