This might be one of the most asked questions by consumers. This might be due to many articles written about older “legacy products” that were sold decades ago prior to rate stabilization rules and the interest rate crash.
The majority of today’s Long-Term Care Insurance policies are designed to have level premiums. There are some that give the policyholder the option of purchasing additional coverage in the future. Some are designed to increase automatically as benefits increase. However, most policies are intended to have level premiums.
Rate Stability Rules
Most states have Long-Term Care Insurance Rate Stability Rules in place. These rules, developed the National Association of Insurance Commissioners, makes it much harder for an insurance company to get an approved rate increase. Any future increase must be approved by your state’s department of insurance for actuarial reasons, not for profit reasons. Increases must be for a class of individuals, not an individual. These rules require insurance companies to price products from the start properly so future increases are less likely.