Chnages in LTC: eliminating lifetime benefits

policy doctor

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Just read the newsletter from Penn Treaty regarding their LTC policies.

Seems they are going to eliminate offering lifetime/unlimited benefit policies. Cited this is the going trend. Wow...guess that life expectancy being extended longer and longer is not so hot actuarially for LTC co's. LOL....So is this another attempt to shake money from the family tree, instead of letting insurance or medicaid planning take the hits?

I've also heard alzheimers is on the increase. Will aging baby boomers bring marijuana impaired claimants to the table?

Was curious if other companies are limiting their benefits in this arena?
 
John Hancock new "Leading Edge" product has replaced the Lifetime with a 5 years plus 1 million. After you use up your 5 years you then start using your 1 million reserve. Yet it is about 20% cheaper then their Lifetime feature under other products they have. Plus they are moving away from the 5% inflation protection and now offering the CPI inflation mark.
 
This will be the trend as new technologies come along, especially molecular nanotechnology. When people start living to 150 years, 200 years, et cetera, the entire insurance industry will be forced to adapt.
 

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