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Help for costly long-term care premiums
No. 4: Costly long-term care premiums © Fotolia.com

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 thanks to falling 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 have fallen, insurers have seen the return on their investments slip. For every 1% decline in rates, insurers have needed to hike premiums by between 10% and 15%, 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. "Or, you go to the doctor and some condition is diagnosed. Now, you are uninsurable."

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