The number of insurance companies offering Long Term Care policies has dropped dramatically in the last four years. Many of them increased premiums in order to account for high loss volume, causing consumers to stay away from the high premiums and “use it or lose it” design.
John Hancock was the latest of many carriers, deciding to drop out of the Long Term Care policy market. The press release dated November, 10, 2016, stated that they stopped sales in all states due to consumer demand and significant capital requirements.
On the other hand, Long Term Care and Chronic Illness riders continue to be very popular on the life insurance side of the industry. For more information on these riders and how they can be added to life insurance policies, go to http://1035exchange.org/should-i-include-a-long-term-care-rider/.
These riders can be included in a life insurance policy for very little cost, and give you the ability to access a portion of the death benefit while the insured is still alive. Chronic Illness riders, in particular, have gained in popularity. There is not additional premium charge for the rider, typically. If you access the benefit, your policy death benefit and values will be impacted, however, if you never exercise the benefit there is never a cost to you.
These riders vary from carrier to carrier, so be sure to read the policy careful for limitations, exclusions and specifics. These riders are not a substitute for long term care insurance, but the benefits can help reduce your out of pocket expenses.