The Wall Street Journal reported on November 12th, 2010 that MetLife will stop offering long term care insurance, otherwise known as LTC. An insurance company stops offering a product when it no longer is a profitable product. So, if the LTC product is going away, it says that owners of long term care policies are indeed experiencing a need for long term care, which can be extremely costly. If this financial-risk-transfer form of insurance didn’t exist, how would one pay for long term care?
According to www.longtermcare.gov, the average DAILY rate for a private nursing home room in Arizona is $216 a day or about $79,000 per year. It’s easy to see why MetLife is exiting the LTC business. With enough claims like this, the premiums collected by MetLife soon fall short of the claims made by ailing clients.
What does this mean? It means, people are indeed utilizing long term care, which can run about $79,000 in Arizona! And if you don’t have a LTC policy, consider purchasing one. Why? It can preserve your wealth. It can create a completely different life experience vs. not having such financial protection in place.
What do you think? Comment below. I’ll personally respond!
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I found this article very up-to-date and informative as it provides excellent tips to obtain the best possible long term care insurance rates and quotes. With this handy information, you are able to make your decisions more wisely and obtain the best long-term care insurance plan for yourself. It highlights the importance of having long term care insurance especially for the people above 65 years of age in helping them to plan for their long-term care needs