Don't think that how it works. I believe most LTC policies are issued with a fixed rate. If you have inflation protection the initial rate is higher. In most states, the company can only increase rates on fixed rate existing policies with permission of the State Insurance Dept. You can usually find out these details by going to the State Insurance Dept website in your state.WoW2012 wrote: ↑Wed Feb 21, 2018 11:42 amDrGoogle2017 wrote: ↑Wed Feb 21, 2018 11:14 amI’m in California. I started with $88 per month, then it went up to $90 something, then last year it went up to $150 something. I’m under 60, so it can’t be because of age related increase. If I don’t pay for the increase, my benefits would be reduced. In the end, I looked at both of my aunts in their early 90s, still have all faculties in tact, I decided maybe I have longevity gene in me, that’s when I drop it. Plus I certainly could pay $500k(self insured).WoW2012 wrote: ↑Wed Feb 21, 2018 11:04 am9 states have not passed the new rules. Sounds like you live in one of those states.DrGoogle2017 wrote: ↑Wed Feb 21, 2018 10:59 amNot old, it was purchased in 2010. 3 rate increases already. I didn’t care when it was pretax money but after I retired it was after tax money.
How big were your increases?
Those weren't rate increases you had. Your premium went up because of the type of inflation protection you had in the policy. It's called a "Future Purchase Option" or a "Guaranteed Purchase Option". That type of inflation protect makes your premium go up every 2 or 3 years. It starts off cheap but then becomes increasingly expensive because the cost of the increases are based upon your attained age, not your issue age.
For example: http://www.catalog.state.ct.us/cid/port ... iling.aspx: