May 29, 2012

Planning for long-term care is vital to ensure that you and your loved ones are financially prepared for the care you’ll need in your golden years. Recently however, many people who purchased long-term care insurance are receiving shocking rate increases to their policies. These rate hikes are due to miscalculations on the part of the insurance companies when the policies were initially priced. Costs of custodial care are rising faster than projected, and people are living longer than expected. Coupled with the fact that more people are using their policies than the insurance companies expected, many insurance companies have simply decided to get out of the long-term care game.

Read this article to find out the latest in long-term care insurance sticker shock.

So what can be done to avoid the rising costs of long-term care insurance? This article offers two ways to hedge long-term care costs and solutions to avoid using all your assets to pay for care. It is always important, however, to consult with several financial advisors or planners before making a decision that could affect your savings.