Thursday, September 20, 2012

Long-term care insurers running scared

Moody’s Investors Service reported that long-term care insurance faces an uncertain future because firms may find it difficult to profit from the product.

Laura Bazer, a vice president at Moody’s, issued this statement,

“Key credit considerations for the sector are the relative newness of long-term care insurance and the long-tailed and complex product structure, which make it difficult to price the product profitably.”

Genworth Financial Inc.
has said it’s raising prices for the coverage, while the largest U.S. life insurers, led by MetLife Inc. and Prudential Financial Inc., are retreating from selling long-term care coverage.

So does this mean you should throw your hands up and forget about protecting your nest egg from soaring long-term care costs?

Heck no!

What it DOES mean is that you have to weigh your options even more closely. And the best place to begin is by picking up your copy of my updated and expanded edition of A Boomer’s Guide to Long-termCare.

Inside, I’ll show you what to look for in long-term care insurance policies and alternatives in case insurance is not for you.

Best wishes,


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