If you have been thinking about investing in long-term care insurance when planning for the future, you now, unfortunately, have one less option to consider. Recent news reports that as of August 1 of this year, Prudential Financial Inc will stop selling group long-term care policies in all but five states. According to news sources this makes Prudential the latest in a line of insurers to stop selling the product.
While the growing inevitability of the need for long-term care and how to pay for it is a rising concern for the American public, offering long-term care insurance has not been a profitable practice for insurers. “Most insurers that offer [long-term care insurance] have suffered through sizeable losses. In the early days of the product, insurers underestimated the size and length of claims, and more recently the rate environment has exacerbated the problem.”
If you already have long-term care insurance through Prudential don’t panic, “Prudential said coverage under existing policies would not change, and would remain renewable.” It will be in your best interest to be vigilant, however, considering that Prudential “cautioned that premiums could change, subject to regulatory review.”
If you do not yet have long-term care insurance, never fear, there are still plenty of companies you can turn to for coverage. The National Care Planning Council has an excellent online guide to many aspects of long-term care, but your options and requirements will vary depending on your health, your age, your state of residence, and other factors. Please contact our office for the most up-to-date and relevant options for your family.