Number of long-term care options dwindling

On page 80 of a Boomer’s Guide to Long-term Care, I recommended checking with your employer to see if they offer long-term care insurance.

Well, that option is diminishing with each passing day …

Prudential, the second-largest U.S. life insurer, is getting out of the group long-term care business. The reason: Low interest rates are killing returns. And Fed Chairman Bernanke’s announcement this week that interest rates would remain low at least until 2014, meant the ax for group policies as far as Prudential was concerned.

Back in March the company stopped selling individual policies; again, because of low interest rates on reserves.

As I’ve said over and over … Boomers cannot count on the government, especially Obamacare, to help with what is surely the biggest financial challenge anyone entering retirement could face. So taking responsibility for your long-term care planning has never been more important than now.

Best wishes,

George

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