I was fortunate enough to be able to buy a Long Term Care or LTC Insurance Policy that only required payments for 15 years, something which I don’t even think exists anymore. Actuaries underestimated how long people would live and, as a result, have been paying out more LTC claims than originally projected. This has caused many LTC providers to pull out of the market completely, and others to raise rates dramatically. AARP The Magazine (December 2022/January 2023 Issue, page 28) profiled Terry Koplan, a retired Los Angeles resident who bought a policy with an inflation-protected benefit, currently $270/day, for an unlimited time. However, he was recently notified that his annual premium would triple in 2024 to $14,315. The insurer offered him other options such as cancelling the policy and refunding one-quarter of past premiums. “ I feel like I have been completely cheated,†Terry told AARP.
