Should You Ever Replace Your Long-Term Care Insurance Policy for Another One?

The decision of whether or not to replace a current policy should be taken very seriously and analyzed by your financial advisor and a long-term care planning and insurance expert. In most cases, you have more to lose than gain by replacing an existing policy. But each situation is unique, and should be analyzed by considering the following questions:

• Is your current insurance carrier financially stable and committed to the LTC insurance industry? Do they increase your premium rates frequently?
• Has your health changed for the worse since you purchased the policy? If so, you may not qualify if you applied for coverage today.
• How long ago was the policy purchased? A policy purchased several years ago probably has a fairly low premium compared to the premium of newly issued coverage today. This may be true even if your current carrier has increased your premium rate.