People have different opinions on the need to buy long-term care insurance.
A story in the New York Times says interest in buying the coverage has waned in recent years.
Sales of policies totaled 380,000 in 1990 and peaked at 750,000 in 2002. Last year, only 110,000 policies were sold.
The drop is due to several reasons. Insurers found themselves faced with more claims and more expensive claims than they had expected. Also, the low interest rates of recent years didn’t allow them to earn what they had hoped to earn off their investments.
So premiums went up. Some companies stopped selling them. And the business as a whole was thought to be unpredictable at best.
Now, only 8 million Americans have such policies.
Those who buy them are the most cautious and conscientious. Many people think they can “self insure” by using savings if necessary. Others think Medi-Cal will help. However, to get it, you must be impoverished.
In any case, the field is in flux.
If you have questions about elder law, feel free to call us for a consultation at (626) 696-3145.