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Help for costly long-term care premiums
Long-term care insurance covers the cost of a wide range of expensive services you may need in your final years, including nursing care, assisted living and adult day care. This insurance potentially can save you and your family hundreds of thousands of dollars.
But because of lower interest rates, long-term care insurance premiums have skyrocketed, says Jesse Slome, executive director of the American Association for Long-Term Care Insurance.
"Lower rates have wreaked havoc on long-term care insurance costs," he says.
As interest rates fell, insurers saw the return on their investments slip. For every 1 percent decline in rates, insurers have needed to hike premiums by 10 percent to 15 percent, according to Slome.
Consumers may have been tempted to delay buying long-term care insurance while they wait for interest rates to rise. But that strategy has carried risks.
"Twenty-four hours from now, your health can change," Slome says.