Women Can Still Avoid Long Term Care Insurance Rate Increase

While several of the nation’s largest long term care insurance companies have started charging women more than men, there is still time for women on their own to obtain lower cost coverage from leading insurers that have not yet adopted sex-distinct pricing.

“The window of opportunity for women in their 50s and 60s is closing,” declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance. “Women who are single, divorced or widowed are advised to act sooner rather than later.”

The national trade group released an analysis report of how the adoption of sex-distinct pricing is impacting long term care insurance costs. According to the organization’s studies, a single woman can now pay as much as 80 percent more than a same aged single man. ”Long term care insurance companies are charging women more because women account for two-thirds of all claims and the vast majority of the $6.6 billion paid out yearly in long term care insurance claims,” Slome explains.

Not all insurance companies have adopted the sex distinct pricing. “Other major long term care insurance companies have already filed new policies that will charge women more and once approved, they will withdraw their current offerings,” Slome shared with a group of Midwest insurance professionals.

According to the Association study, a 55-year old woman purchasing $164,000 of current protection with the option to increase her coverage in future years would pay about $1,800 yearly for coverage from an insurance company utilizing the new sex-distinct pricing. “The same amount of coverage from one of the highly rated insurers still utilizing equal rates for men and women would cost under $1,000 yearly,” Slome reports. “That is a significant savings to lock in.”

The national long term care insurance expert shared concerns raised by consumers calling the trade group regarding the risk of future rate increases that would specifically target single women. “The risk of future rate increases for women purchasing cheaper policies still utilizing unisex pricing exists but new state imposed regulations require that insurers show significant increases in claims, claim costs or factors not related to profitability,” Slome notes. “Sex distinct pricing is new territory for both insurers and state regulators but what might happen is an insurer requests rate increases for both men and women, requesting a larger increase for women. It would then be up to the state to approve the difference.”