A long-term care (LTC) planning firm says it’s seeing signs that low interest rates are starting to affect prices for new life insurance policies that offer LTC benefits.
Murray A. Gordon & Associates Long Term Care Planning (MAGA) of Bannockburn, Illinois, says one life-LTC hybrid issuer has warned it that prices on new life-LTC hybrids will go up about 8% to 10% in January.
“We expect more carriers to follow suit,” MAGA said Monday, in an email blast sent to agents.
Analysts at Milliman, an actuarial consulting firm, reported in September that they saw signs that life-LTC prices were rising.
Nine life-LTC hybrid issuers told the Milliman analysts that they had increased prices for new hybrid policies in the previous 12 moths, and two of those issuers said they had repriced new products three or more times in the previous 12 months.