Single women shopping for a long-term care policy should act now because while roughly half of the country still charges them the same rate as single men, some insurers started jacking up single women’s LTC coverage costs this spring by as much as 60%.
“This spring, leading insurers started introducing new policies that charge single women an average of between 40% and 60% more than a comparably aged single man,” said Jesse Slome, executive director of the American Association for Long Term Care Insurance, in a Friday statement. “It is a progressive state-by-state roll-out, however, and there are still 25 states where single women can lock in rates equal to those paid by men.”
According to an Association study, policies utilizing unisex pricing are still available in 25 states, including some of the largest states like California, Florida and New York. However, Slome says, “it is just a matter of time until their State Departments of Insurance get around to reviewing and approving the ‘sex distinct’ policies for sale to the public. At that time, the current policies are no longer offered for sale."
As it stands now, the Association says, in states like California and New York, one large company is already charging single women more. Two other companies are waiting for their new products to be approved.
The following map depicts states where at least one major long-term care insurance company still offers unisex rates.
Check out Get Ready for Gender-Based Pricing on LTC Insurance on ThinkAdvisor.