“Relevant future coverage for changing care industry. One concern that stops some consumers from purchasing, or even considering, long term care insurance is the fear policies could become obsolete due to the change in the care industry. Insurers are working to address this issue by:
1. Offering inflation protection to address the concern that the cost of care would be higher in the future. This usually comes in the form of coverage that increases at five percent compounded annually while premiums remain level. Other inflation options offer more affordability by providing less steep increases to the benefits. Despite all these choices, there is no guarantee that these increases in benefits will match the cost of care in the future.
2. Offering alternative plans of care to cover future providers or services not known at the time of policy issue- provided the insurer, the care manager, and the insured all agree.
3. Providing an upgrade program for current policyholders, allowing them the ability to buy the most recent product offering without further underwriting and with some type of premium credit.
“As you can see, today’s long term care insurance products have significantly evolved from the early nursing home policies of a generation ago.
“They offer broad and comprehensive coverage through innovation and flexibility – always responding to meet the needs of consumers. And even as the industry recognizes that tomorrow’s long term care world will be different from today’s, it continues to offer innovative solutions.”*