Long Term Care Insurance Prices and Women
- gender-based pricing on horizon
December 30, 2012 — Major insurance carriers may increase long term care insurance prices for women in 2013 by 20-40%. Insurers have long known that women are more likely to use their coverage than men. Women live longer than men and are often left alone to fend for themselves with no means of free support from family caregivers. It is estimated that roughly two-thirds of long term care claims are made by women. Approximately $7 billion in benefits was paid out in 2012 and the number of claims grows each year, in part because of the aging baby-boomer population.
Pricing for other types of insurance is frequently gender-based, but long term care insurance prices have traditionally been unisex. However, according to the Wall Street Journal article Women Face Higher Costs1, Genworth Financial, the largest U.S. long term care insurance provider plans to increase LTC insurance pricing for women sometime in 2013. Genworth has already filed with regulators to raise insurance prices for single women, except in two states, Montana and Colorado, which require unisex pricing. Other insurers may follow Genworth's lead.
LTC Prices May Increase But Marital Discounts are Still Available
Married couples applying for long term care insurance together would still receive discount pricing, a blended rate, but a married woman applying alone and single women would pay the new, higher, gender-based price. Same-sex couples, couples going through a divorce that is not yet final (and so are still legally married), and unmarried domestic partners may still quality for the blended marital discount.
Apply Before the Price Increase to Save Significantly
Women who are 55 or older would be wise to consider long term care insurance prior to the price increase, taking advantage of current unisex pricing. Nearly 70% of Americans will require long term care at some time in their lives; and about two-thirds of benefits are received for claims made by women. Women who purchase a long term care insurance policy now, rather than after the price increase, could enjoy significant savings in premiums. Get a free long term care insurance quote.
1.Greene, Kelly (November 24, 2012)
"Women Face Higher Costs", Wall Street Journal Online
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