A combination of historically low interest rates and higher than predicted claims costs have caused many insurance companies to raise premiums on long term care insurance by as much as 40%. MetLife, Prudential, and other long term care insurance companies have exited the market to avoid assuming additional risk.
While many seniors understand the risk of an expensive long term care incident, many don’t like the use-it-or-lose it nature of this expensive coverage. As a result, many are buying hybrid long term care plans that pay the insurance premium back if they don’t need long term care insurance.
