Long-ago miscalculations by insurers have led to policyholders’ facing steep premium increases. But there are ways to keep costs down.
https://www.nytimes.com/2019/08/23/your-money/long-term-care-insurance-prices.html
It’s a pity, because with traditional LTC insurance, if you let it lapse you lose everything you already put in!
There is a way to convert the policy to a “paid up” policy with total benefits equal to what was already paid in – typically that wouldn’t be enough to cover the costs of extended care, but it would avoid the “lose everything” problem. So, for example, if you had paid $2000 a year in premiums for 12 years, and then had to let the policy lapse, you’d have a reserve benefit of $24,000. (So if you do run into financial problems – don’t just stop paying – contact your insurer to find out what your options might be).
Definitely speak with your insurance agent about all possible options. My policy is going up 30% over the next 3 years. It’s a lifetime benefits policy which isn’t available anymore so it’s not something I want to give up. We decided to split the original policy into 2 policies (with each policy providing half the original coverage amount) so I can manage each part separately. I’m keeping both parts as is for now, but as the cost continues to go up I can drop one of them or more likely change the terms of one to reduce the cost. I like that he’s offered a strategy to be a little more nimble in navigating the increasing costs.
Here’s an article discussing the issue—no firewall.