John Hancock, one of the largest long term care insurance companies in the industry, recently announced a large rate increase for new applicants on a significant part of their portfolio.  As of June 7, 2010, the following changes will be made:

• Leading Edge will no longer be available (except in Florida) for individual market sales
• Preferred rate discount for individuals lowered from 15% to 10%
• Preferred rate discount for couples lowered from 40% to 35% if both approved and 30% to 25% if only one approved
• Unlimited lifetime benefit options will no longer be available on Custom Care II Enhanced
• Rates for new applications will increase by approximately 5% for Consumer Price Index inflation adjustment option and approximately 32% for applicants choosing a 5% compound inflation protection rider
• More strict guidelines for what providers are qualified to provide care under the available plans

What remains to be seen is whether changes will also effect existing policyholders.  Hopefully the new changes will allow current policyholders to continue with their current rates (Virginia long term care insurance rates and rates in other states are not guaranteed and subject to change).  As insurance carriers begin to realize losses from people living longer, receiving care for an extended period of time, and the cost of care rapidly rising, more changes may be seen in the near future at other long term care insurers.

TermInsuranceBrokers.com offers long term care insurance from many of the industry’s leading companies and is happy to help provide a comparison of available options.  Please feel free to give us a call at 1-800-571-2980 or e-mail us if you have any questions.  You can also complete the short form below to get a long term care quote: