Americans are beginning to discover the importance of this coverage and are starting to buy again.
The latest trend in long term care insurance in the United States appears to be the increasing recognition of the importance of this kind of coverage, and therefore a rise in the number of policies that are actually being purchased.
This type of policy has been available to Americans for approximately 40 years.
However, as it is an expensive form of insurance policy, many people have avoided it as they have prioritized other expenses over this one. Now, though, as the population ages in the country, long term care insurance and its importance is starting to become much more evident. Suddenly, people are starting to look into the costs of assisted living care or nursing home life and are realizing that the price tag attached to those services are considerably higher than the premiums they would be paying to cover themselves in case they should ever become disabled.
Experts believe that the trend toward long term care insurance will only continue growing.
Equally, though, the costs for this already expensive insurance coverage have been steadily and greatly rising over the last several years. This has been the result of a number of different contributing factors, among which one of the largest was the miscalculation of the risks and the expenses involved by the insurers, themselves.
As insurance companies have found themselves having to pay out far more than they had expected on these policies, and as they are bringing in far lower returns than anticipated on the premiums, many insurers have opted out of the market, completely. Others have gone the opposite direction and have filed for rate increases from their state regulators (where that is required).
The rising premiums have meant that people who have been consistently paying for their policies for many years are now watching the amounts on their monthly bills rapidly rising. Many are seeing increases in the double digit percentages on policies for which they already pay thousands every year. This has been a very worrying trend in long term care insurance and the hope is that it won’t continue for too much longer or the coverage will prove to be cost prohibitive even to those who truly understand its value.