Jeff Opdyke from the Wall Street Journal writes in today's Charlotte Observer that for many current policyholders of Long Term Care Insurance, considering replacing coverage may be a good idea.  Let me discuss this in brief below.  Everyday, we here at LTCtree work with people from across the country who are familiar with long term care insurance, but often they are familiar with previous incarnations of LTC insurance.

New Laws Make Replacing LTC Easier

The article revolves around the NAIC's model legislation that many states are passing.  Essentially, this legislation makes rate increases less profitable for insurance companies.  As a result, the companies have more incentive to price their policies correctly to start with, for future rate increases will be less rewarding to the long term care insurance companies.

Re-Shopping Your Long Term Care Policy

Before replacing insurance, always consult with a trusted adviser, such as us here at LTCtree.  Allow your adviser to look over and compare coverages.  Odds are there are going to be several key differences in coverage.  A few key points:

• Don't just shop on rate - shop onf company strength.
• Re-evaluate your needs - there are a lot of options, and you may be "over insuring" yourself.
• Age and health are important factors - if your health has declined significantly, you may not qualify for new benefits.