Does Long-Term Care Insurance Make Sense?

English: Original juvenile life insurance adve...

English: Original juvenile life insurance advertising. (Photo credit: Wikipedia)

Most assisted living facilities contain a financial page on their website, to answer questions about paying for their services. Long-Term Care (LTC) Insurance is usually mentioned as one of a few ways to meet the substantial cost of care. In the last two years, Met Life and Prudential have stopped accepting new customers seeking LTC policies. Many have said the actions of these two companies demonstrates why LTC insurance is a loser product, while others have said they were bit players in the field, so their withdrawal cannot be taken as a judgement on the viability of the product.  This link here contains information about the business model of LTC that I have not seen elsewhere. Namely, that with interest rates at historic lows, the companies cannot make any money. Once rates rise (and they will) expect more attention to this product by insurance companies.

One thought on “Does Long-Term Care Insurance Make Sense?

  1. Pingback: 2012 MetLife Market Survey Results « Senior Care stuff

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